Suppose ABC Concrete Is the Dominant Firm in a Market

question 70

Multiple Choice

Suppose ABC Concrete is the dominant firm in a market consisting of five firms.ABC's market share is 40% of the market.The elasticity of market demand is 0.8 and the elasticity of supply for the remaining firms is 6.What is the elasticity of demand for ABC's product?

• A)6
• B)8
• C)11
• D)13

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Definitions:

Welfare Capitalism

An economic system that combines a predominantly market-based economy with extensive social welfare programs.

Unionization

The process by which workers form or join a union to collectively negotiate with their employer regarding wages, working conditions, and other employment terms.

Intimidation

The act of threatening or coercing someone into doing or not doing something, often used in contexts of labor disputes or competitions to unduly influence parties.

CIO

Congress of Industrial Organizations, a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 to 1955.