{"id":10006,"date":"2021-10-21T09:13:12","date_gmt":"2021-10-21T09:13:12","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/eco-calculate-the-rothschild-index-for-each-industry\/"},"modified":"2021-10-21T09:13:12","modified_gmt":"2021-10-21T09:13:12","slug":"eco-calculate-the-rothschild-index-for-each-industry","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/eco-calculate-the-rothschild-index-for-each-industry\/","title":{"rendered":"Eco – calculate the rothschild index for each industry"},"content":{"rendered":"
\n

Refer to the figure below:<\/p>\n

(a) Use the estimated elasticities to calculate the Rothschild index for each industry.<\/p>\n

Instruction:<\/strong> Round your answers to 3 decimal places.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Industry<\/strong><\/p>\n<\/td>\n

\n

Own Price Elasticity of Market Demand<\/strong><\/p>\n<\/td>\n

\n

Own Price Elasticity of Demand for Representative Firm’s Product<\/strong><\/p>\n<\/td>\n

\n

Rothschild index<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Agriculture<\/p>\n<\/td>\n

\n

-1.8<\/p>\n<\/td>\n

\n

-96.2<\/p>\n<\/td>\n

\n

[removed]<\/p>\n<\/td>\n<\/tr>\n

\n

Construction<\/p>\n<\/td>\n

\n

-1.0<\/p>\n<\/td>\n

\n

-5.2<\/p>\n<\/td>\n

\n

[removed]<\/p>\n<\/td>\n<\/tr>\n

\n

Durable manufacturing<\/p>\n<\/td>\n

\n

-1.4<\/p>\n<\/td>\n

\n

-3.5<\/p>\n<\/td>\n

\n

[removed]<\/p>\n<\/td>\n<\/tr>\n

\n

Nondurable manufacturing<\/p>\n<\/td>\n

\n

-1.3<\/p>\n<\/td>\n

\n

-3.4<\/p>\n<\/td>\n

\n

[removed]<\/p>\n<\/td>\n<\/tr>\n

\n

Transportation<\/p>\n<\/td>\n

\n

-1.0<\/p>\n<\/td>\n

\n

-1.9<\/p>\n<\/td>\n

\n

[removed]<\/p>\n<\/td>\n<\/tr>\n

\n

Communication and utilities<\/p>\n<\/td>\n

\n

-1.2<\/p>\n<\/td>\n

\n

-1.8<\/p>\n<\/td>\n

\n

[removed]<\/p>\n<\/td>\n<\/tr>\n

\n

Wholesale trade<\/p>\n<\/td>\n

\n

-1.5<\/p>\n<\/td>\n

\n

-1.6<\/p>\n<\/td>\n

\n

[removed]<\/p>\n<\/td>\n<\/tr>\n

\n

Retail trade<\/p>\n<\/td>\n

\n

-1.2<\/p>\n<\/td>\n

\n

-1.8<\/p>\n<\/td>\n

\n

[removed]<\/p>\n<\/td>\n<\/tr>\n

\n

Finance<\/p>\n<\/td>\n

\n

-0.1<\/p>\n<\/td>\n

\n

-5.5<\/p>\n<\/td>\n

\n

[removed]<\/p>\n<\/td>\n<\/tr>\n

\n

Services<\/p>\n<\/td>\n

\n

-1.2<\/p>\n<\/td>\n

\n

-26.4<\/p>\n<\/td>\n

\n

[removed]<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

(b) Based on these calculations, which industry most closely resembles perfect competition?<\/p>\n\n\n\n\n\n\n
\n

[removed]<\/p>\n<\/td>\n

\n

Transportation.<\/p>\n<\/td>\n<\/tr>\n

\n

[removed]<\/p>\n<\/td>\n

\n

Wholesale trade.<\/p>\n<\/td>\n<\/tr>\n

\n

[removed]<\/p>\n<\/td>\n

\n

Finance.<\/p>\n<\/td>\n<\/tr>\n

\n

[removed]<\/p>\n<\/td>\n

\n

Retail trade.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

(c) Which industry most closely resembles monopoly?<\/p>\n\n\n\n\n\n\n
\n

[removed]<\/p>\n<\/td>\n

\n

Wholesale trade.<\/p>\n<\/td>\n<\/tr>\n

\n

[removed]<\/p>\n<\/td>\n

\n

Retail trade.<\/p>\n<\/td>\n<\/tr>\n

\n

[removed]<\/p>\n<\/td>\n

\n

Finance.<\/p>\n<\/td>\n<\/tr>\n

\n

[removed]<\/p>\n<\/td>\n

\n

Transportation.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Note<\/span><\/strong>:TheRothschild index is given by,<\/p>\n

R = ET\/EF<\/p>\n

where ET is the elasticity of demand for the total market and EF is the elasticity of demand for the individual firm\u2019s product.<\/p>\n

For perfect competitionRothschild index is 0 and 1 for monopoly so its value lies in between 0 to 1.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Refer to the figure below: (a) Use the estimated elasticities to calculate the Rothschild index for each industry. Instruction: Round your answers to 3 decimal places. Industry Own Price Elasticity of Market Demand Own Price Elasticity of Demand for Representative Firm’s Product Rothschild index Agriculture -1.8 -96.2 [removed] Construction -1.0 -5.2 [removed] Durable manufacturing -1.4 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-10006","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/10006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=10006"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/10006\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=10006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=10006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=10006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}