The kinked demand curve explains the observation that in oligopoly markets
A. Prices may not change even in the face of cost increases.
B. Practice product differentiation.
C. Rivals do not match price reductions.
D. Rivals match price increases.
Answer: A
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The solvency of Social Security can be extended if
A. the trust fund invests in government bonds. B. the retirement age is reduced. C. the cap on taxable earnings is lowered. D. the tax rate is increased.
A change in the price of a good
A) shifts the good's demand curve and also causes a movement along it. B) shifts the good's demand curve but does not cause a movement along it. C) does not shift the good's demand curve but does cause a movement along it. D) neither shifts the good's demand curve nor causes a movement along it.
Explain whether a monopoly that maximizes profit will also be maximizing revenue and production
What will be an ideal response?
Which of the following is TRUE about firms organized along functional lines?
a. Workers develop functional expertise b. Workers can easily share information within their division c. They foster the exploitation of economies of scale d. All of the above