The assumption(s) made to construct a kinked-demand oligopoly model is (are) that:
a. all firms in the industry will ignore the price changes made by any one firm.
b. any price decrease will be ignored, but price increases will be followed.
c. all firms will follow a price decrease but will ignore any price increase.
d. all price changes made by any firm will be followed by all of the other firms.
e. price can go up, but it cannot go down.
c
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A rent ceiling below the equilibrium rent will create
A) a more efficient allocation of housing. B) a larger number of apartments rented. C) no change in the number of apartments rented. D) increased search time and black markets.
In the circular flow model, firms purchase in the
a. money market and sell in the product market b. product market and sell in the resource market c. resource market and sell in the money market d. product market and sell in the product market e. resource market and sell in the product market
If the exchange rate of yen per dollar increases from 100 yen = $1 to 110 yen = $1, then
a. Japanese-produced goods would become more expensive b. the dollar has depreciated c. the yen has appreciated d. U.S.-produced goods would become more expensive e. U.S. exports would increase
Natural monopolies:
A. are the only monopolies that are efficient. B. generally earn zero accounting profits due to regulations. C. can capture the lowest production costs possible for the industry. D. are always protected by government policy.