The existence of a kinked demand curve under oligopoly conditions may result in
A) price flexibility.
B) price rigidity.
C) competitive pricing.
D) None of the above
B
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Refer to Table 9-14. The real average hourly earnings for 1965 in 1982-1984 dollars equal
A) $1.28. B) $6.49. C) $8.28. D) $15.45.
Everything else held constant, an appreciation of the domestic currency will cause the IS curve to shift to the ________ and aggregate demand will ________
A) right; increase B) right; decrease C) left; increase D) left; decrease
If the production possibilities curve is a downward sloping straight line, then
A) resources are highly specialized, making it difficult to use them for alternative uses. B) technological change has increased. C) production is efficient only when producing at the mid-point. D) all resources must be perfectly adaptable for alternative uses.
The distribution of surplus received from a subsidy offered in a market where a positive externality is present depends on:
A. how the subsidy is distributed among those affected by the externality. B. if those who are affected receive their true value of the externality. C. where the government gets the money to pay for the subsidy. D. None of these statements is true.