Which type of curve results when oligopoly firms agree to match each other’s price cuts, but not to match price increases?
a. Market dilemma curve
b. Average cost curve
c. Bent supply curve
d. Kinked demand curve
d. Kinked demand curve
A kinked demand curve occurs when a perceived demand curve arises when competing oligopoly firms commit to match price cuts, but not price increases.
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John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517If we plot John's opportunity cost per window on the vertical axis and the number of windows cleaned each day on the horizontal axis, we will have John's ________ curve for window-cleaning services.
A. supply B. benefit C. production possibilities D. demand
Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the value of marginal product from hiring the fourth worker?
A) $2,400 B) $840 C) $120 D) $60
Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the production of calendars increases. In the market for calendars, the equilibrium price rises, but the effect on the equilibrium quantity is ambiguous
a. True b. False Indicate whether the statement is true or false
During a period of unanticipated inflation,
A. Debtors and creditors are both better off because of lower real interest rates. B. Individuals on fixed incomes are better off. C. All individuals are worse off because of the level of uncertainty. D. Debtors are better off and creditors are worse off.