Suppose the Market Demand Elasticity Is Constant at -2,and There

question 30

Multiple Choice

Suppose the market demand elasticity is constant at -2,and there are three identical firms in the oligopolistic market.A Cournot firm's MPL = 1.2L^-0.5,then the labor demand for a Cournot firm is

• A)PL^-0.5.
• B)0.6PL^-0.5.
• C)0.2PL^-2.
• D)PL^-2.

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