The industry elasticity of demand for telephone service is ?2, while the elasticity of demand for a specific phone company is ?5. What is the Rothschild index?

The cost-output elasticity is used to measure:

A) economies of scope. B) economies of scale. C) the curvature in the fixed cost curve. D) steepness of the production function.

If identical firms that remain in a competitive market over the long run make zero economic profit, why do these firms choose to remain in the market?