In the kinked-demand model of noncollusive oligopoly, each firm thinks the demand curve below the going price is:
A. more elastic than the demand curve above the going price.
B. less elastic than the demand curve above the going price.
C. less elastic than the marginal revenue curve above the going price.
D. more elastic than the marginal revenue curve above the going price.
Answer: B
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If we were to compare the hourly earnings of union and nonunion workers in recent years, we would find that
A) unions have not succeeded in raising the hourly incomes of their members above nonunion members. B) unions have succeeded in raising the hourly incomes of their members above nonunion members. C) state government unionized employees have earned less in hourly wages than nonunion government employee. D) union members have increased their hourly incomes, but are still below the hourly incomes of nonunion members.
A regular payment received by stockholders for each share they own is called a:
A. dividend. B. bond. C. capital gain. D. coupon payment.
A private good is a good that:
A. is consumed by a single person or household. B. cannot be used by private citizens. C. cannot result in external benefits or costs to those who don't consume. D. is available for everyone to consume, regardless of who pays.
What is the substitution effect for leisure demand?
What will be an ideal response?