Author Question: Puma's share of the athletic shoe market is 30 The own price elasticity of demand for Puma athletic ... (Read 69 times)

karateprodigy · **on:** Jul 1, 2018

Puma's share of the athletic shoe market is 30 The own price elasticity of demand for Puma athletic shoes is 2.5 . What would be the own price elasticity of athletic shoes as a whole?
a. 8.3
b. 0.75
c. 0.54
d. 1.5

Question 2

If the game continues for infinity, then the new Nash Equilibrium is
a. for one firm to charge a HP forever.
b. for your firm charge a LP when the other firm does.
c. for each firm to charge HP so long as the rival does, otherwise charge a LP.
d. for each firm to charge LP until the rival does, and then to charge a HP forever.