This week we are
looking at industries. For example, automobiles are a product produced
collective by firms in the auto industry. The elasticity of a firmās
demand curve depends on the type of market in which the firm operates.
In the video, Sal at the Khan Academy, provides the keys to identifying
the industry type: perfectly competitive; monopolistic competitive;
oligopoly; or pure monopoly.First, identify a firm
with which you or your organization does business. Use the
characteristics provided by Sal and explain if the firm is: perfectly
competitive; monopolistic competitive; oligopoly; or pure monopoly.Second, is the firmās demand curve relatively elastic or relatively inelastic? Explain how you arrive at this conclusion.Third, how does elasticity effect the firmās control over its price?PLEASE DO NOT RELY ON WIKIPEDIA, INVESTOPEDIA OR ANY OTHER PEDIA AS A REFERENCE AT ANYTIME
Source: New feed