One shortcoming of the kinked demand curve model of oligopoly is that it does not explain:
A. Why the marginal revenue curve is kinked
B. How the current price gets determined
C. What the level of profits is for the firm
D. Why the firm is a least-cost producer
B. How the current price gets determined
You might also like to view...
Network effects occur when the value of a platform to its users changes as the number of users rises.
Answer the following statement true (T) or false (F)
The equilibrium of a competitive labor market is associated with
A. no unemployment as labor is assumed to be supplied inelastically. B. no unemployment as everyone who wants a job at the equilibrium wage has one. C. some unemployment as some people do not have a job at the equilibrium wage. D. some unemployment as firms are not required to pay the minimum wage. E. no unemployment as everyone has a job.
Which of the following conditions is true when a producer minimizes the cost of producing a given level of output?
A. The marginal product per dollar spent on all inputs is equal and the MRTS is equal to the ratio of the quantity of inputs. B. The marginal products of all inputs are equal. C. The marginal product per dollar spent on all inputs is equal. D. The MRTS is equal to the ratio of the quantity of inputs.
If the Congress passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a(n):
A. expansionary fiscal policy. B. nondiscretionary fiscal policy. C. contractionary fiscal policy. D. political business cycle.