Question

True or False please explain

a. The price elasticity of demand for an individual firm is equal to the price
elasticity of demand for the industry divided by the number of firms in that
industry.
b. It is impossible to estimate a demand function using an econometric model, since
the “price–quantity” pairs of points that we observe are always contaminated by
other factors, such as whether, income in that community, prices of related

d, Since for a company such as Spotify, the marginal cost of having one more
customer is zero, the optimal price is equal to the average cost plus some markup
which we obtain from what other firms do in the industry.
e. It is wrong to charge women a higher price than to men for products that are, for
all practical purposes, identical.
f. . Price elasticities of demand can never be constant along the demand curve.
goods, and other.
c. If there is uncertainty about the future, we need to use averages constructed using
probabilities. That is, we calculate the average expected marginal revenue and
we equate it to the average expected marginal cost.

Answer 1