The Cartel of Copper Exporting Countries Is Called COPEC

question 30

Multiple Choice

The cartel of copper exporting countries is called COPEC.As part of an international marketing agreement, the United States has agreed to buy all the copper that COPEC wants to sell the United States at a constant price of $100 per ton.COPEC also sells copper in Europe at a price of $150 per ton.COPEC acts just like a monopolist.If COPEC finds it profitable to sell in the United States at $100 per ton and simultaneously to sell in Europe for $150 a ton, what is the price elasticity of demand of COPEC's copper in the European market? (Hint: What is COPEC's marginal revenue in the U.S.market?)

• A)-1
• B)-2
• C)-3
• D)-1/3
• E)-2/3

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Definitions:

Probability

A measure of the likelihood that a specific event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Relative Frequency

A measure indicating how often a certain value, event, or outcome occurs in relation to the total number of cases observed.

Diagnosis

The process of identifying the nature of an illness or other problem by examination of the symptoms.

Venn Diagrams

Graphical representations using circles to show the relationships and differences between various sets.