A major prediction of the kinked-demand curve model is:
A. stability of production costs in oligopolies.
B. price stability in oligopolies.
C. stable purchasing behavior by consumers over time.
D. price instability in oligopolies.
Answer: B
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If the value of the euro increases relative to the U.S. dollar, then French goods will be less expensive in the U.S
a. True b. False
Which of the following provides the foundation of the case for free trade?
a. The law of diminishing marginal utility b. The anti-dumping argument c. The industrial diversity argument d. The theory of comparative advantage
What are trade adjustment assistance programs?
A. Away of subsidizing exports B. Attempts to compensate those who suffer losses when trade restrictions are reduced C. The use of exchange rate policies to equalize exports and imports D. A form of regulatory trade restriction
As the price of a product rises, the quantity supplied decreases.
Answer the following statement true (T) or false (F)