(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 |
Agriculture | -1.8 | -96.2 | [removed] |
Construction | -1.0 | -5.2 | [removed] |
Durable manufacturing | -1.4 | -3.5 | [removed] |
Nondurable manufacturing | -1.3 | -3.4 | [removed] |
Transportation | -1.0 | -1.9 | [removed] |
Communication and utilities | -1.2 | -1.8 | [removed] |
Wholesale trade | -1.5 | -1.6 | [removed] |
Retail trade | -1.2 | -1.8 | [removed] |
Finance | -0.1 | -5.5 | [removed] |
Services | -1.2 | -26.4 | [removed] |
(b) Based on these calculations, which industry most closely resembles perfect competition?
Transportation.
Wholesale trade.
Finance.
Retail trade.
(c) Which industry most closely resembles monopoly?
Wholesale trade.
Retail trade.
Finance.
Transportation.