Consider the four monopoly industries with details given below Rank the expected advertising intensities according to Dorfman-Steiner model Explain your reasoningIndustry 1：Advertising Elasticity of D

According to the Dorfman-Steiner model, the expected advertising intensity is positively related to the product of advertising elasticity and price elasticity of demand. Therefore, we need to calculate this product for each industry and rank them accordingly.

Industry 1: 0.8 x 0.1 = 0.08 Industry 2: 0.7 x 0.4 = 0.28 Industry 3: 0.4 x 0.4 = 0.16 Industry 4: 0.9 x 0.2 = 0.18

Based on the calculations, the industries should be ranked in the following order of expected advertising intensity:

1. Industry 2 (0.28)
2. Industry 4 (0.18)
3. Industry 3 (0.16)
4. Industry 1 (0.08)

Industry 2 has the highest expected advertising intensity because it has the highest product of advertising elasticity and price elasticity of demand. This suggests that the industry can benefit the most from advertising, as it is able to increase demand and revenue significantly through advertising.

Industry 4 comes in second place, followed by Industry 3 and Industry 1. This ranking indicates that Industry 4 and Industry 3 can also benefit from advertising, but to a lesser extent than Industry 2. Industry 1, on the other hand, may not see much benefit from advertising given its low product of advertising elasticity and price elasticity of demand