Homogeneity of the Demand Function Is Shown By:
A) $e _ { x , p _ { x } } + e _ { x , p _ { y } } + e _ { \chi , 1 } = 0$

question 10

Multiple Choice

Homogeneity of the demand function is shown by:

• A)\(e _ { x , p _ { x } } + e _ { x , p _ { y } } + e _ { \chi , 1 } = 0\) .
• B)\(e _ { x , p _ { x } } + e _ { \chi , p _ { y } } + e _ { \chi , l } = 1\) .
• C)\(s _ { x } e _ { x , p _ { \lambda } } + s _ { y } e _ { x , p _ { y } } = - e _ { x , I }\) .
• D)\(s _ { x } e _ { x , I } + s _ { y } e _ { y , I } = l\) .

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Definitions:

Dominant Firms

Companies that hold a major portion of the market share in their industry, influencing market conditions and prices.

Average Total Cost

The total cost of production divided by the quantity produced, it measures the average cost per unit of a product.

Competitive Firm

A business that operates in a market with many sellers offering similar or slightly differentiated products, resulting in limited market power for individual firms.

Long Run

A period during which all factors of production and costs can be fully adjusted, allowing for a complete analysis of economic equilibrium and effects.