Answer:
Option "B" is the correct answer to the following question.
Explanation:
Given:
Price elasticity of Anne’s apple pies = 5
Aggregate market price elasticity = 1.25
Anne’s apple pies have an approximate market share = ?
Computation of Anne’s apple pies have an approximate market share:
Anne’s apple pies have an approximate market share = (Aggregate market price elasticity / Price elasticity of Anne’s apple pies) × 100
Anne’s apple pies have an approximate market share = (1.25 / 5) × 100
Anne’s apple pies have an approximate market share = (0.25) × 100
Anne’s apple pies have an approximate market share = 25%
Answer:
The answer is B. Increasing
Explanation:
An increasing-cost industry is an industry whose costs for production increase as more companies compete.
Why is this so? - This is because each new company in the industry increases its demand for supplies and factors needed for production.
A decreasing‐cost industry is one where costs of production reduces as the industry expands.
