Assume the firms firms operating in an oligopolistic market experience a relatively small change in marginal costs. According to the kinked demand curve model this would:
A) cause a large change in the profit-maximizing level of output.
B) leave the equilibrium price unchanged.
C) cause the profit-maximizing level of output to change by the same amount and in the same direction.
D) cause the profit-maximizing price to change by the same amount but in the opposite direction.
B
You might also like to view...
Use the following figure to answer the question below.
The combination of zero pounds of corn and eighty pounds of green beans is
A. efficient. B. not attainable. C. inefficient. D. local.
Suppose the conditions of the first welfare theorem hold. If the government redistributes income prior to production and trade occurring, the market outcome (resulting from production and trade) will be efficient so long as no deadweight loss is produced in the levying of redistributive taxation.
Answer the following statement true (T) or false (F)
The consumption theories proposed by Modigliani and Friedman suggest that during recessions consumers reduce
A) consumption and maintain saving. B) saving and maintain consumption. C) consumption and saving. D) consumption and investment.
The United States has not experienced a recession as severe as the 2007-2009 downturn since the 1930s
a. True b. False Indicate whether the statement is true or false