(a) Use the estimated elasticities to calculate the Rothschild index for each industry.
Instruction: Round your answers to 3 decimal places.
|Industry||Own Price Elasticity of Market Demand||Own Price Elasticity of Demand for Representative Firm’s Product||Rothschild index|
|Communication and utilities||-1.2||-1.8||[removed]|
(b) Based on these calculations, which industry most closely resembles perfect competition?
(c) Which industry most closely resembles monopoly?
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