Suppose an oligopolistic firm assumes that its rivals will ignore a price increase but match a price cut. In this case, the firm perceives its demand curve to be:
A. kinked, being steeper above the going price than below.
B. kinked, being steeper below the going price than above.
C. linear, being more elastic at higher prices.
D. linear, being less elastic at lower prices.
Answer: B
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Government shares in the gains to risk-bearing activities but does not _____
a. share in the losses when depreciation is straight-line b. share in the losses when the investor has no other income c. share in the losses when depreciation is accelerated d. share in the losses when capital losses are allowed
Repeated games often lead to cooperation
Indicate whether the statement is true or false
An increase in demand will cause a shortage at the original market price
a. True b. False Indicate whether the statement is true or false
All of the following are market determinants of exchange rates EXCEPT
A) changes in productivity in one country relative to another. B) changes in real interest rates in one country relative to another. C) changes in product preferences between countries. D) changes in the relative prices of goods and services within a country.