In a kinked demand market, whenever one firm decides to lower its price,
a. other firms will automatically follow.
b. none of the other firms will follow.
c. one half of the firms follow and one half of the firms don't follow the price cut.
d. other firms all decide to exit the industry
e. all of the other firms raise their prices.
a
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A vertical demand curve has an elasticity of demand equal to zero
a. True b. False Indicate whether the statement is true or false
International trade is possible in part through:
A) inefficiently employing resources. B) restricting the rate of growth of output. C) generalization in the production of all goods. D) specialization in the production of goods.
Which of the following would be considered a perfectly competitive industry?
What will be an ideal response?
If ATC is rising, MC
A. must be below ATC. B. may be below ATC. C. must be above ATC.