The Industry Elasticity of Demand for Good Y Is −3,while

Multiple Choice

The industry elasticity of demand for good Y is −3,while the elasticity of demand for an individual manufacturer of good Y is −12.Based on the Rothschild approach to measuring market power,we conclude that:

A) 1/4, indicating there is significant monopoly power in this industry.
B) 1/4, indicating there is little monopoly power in this industry.
C) 4, indicating there is little monopoly power in this industry.
D) None of the answers are correct.