The kinked demand model of oligopoly assumes that:
A. Rivals will ignore price increases but will match price cuts
B. Rivals will ignore price cuts but will match price increases
C. The oligopolistic firms are colluding
D. A firm faces a more elastic demand curve if it cuts its price, and less elastic if it raises price
A. Rivals will ignore price increases but will match price cuts
You might also like to view...
To be considered officially unemployed, a person must be at least 16 years old
A) and be a discouraged worker. B) and not working. C) and not in school and not working. D) and not working but is actively seeking employment.
Tax laws affect
A) economic efficiency but not equity. B) consumption and production, not efficiency and equity. C) both efficiency and equity. D) equity but not economic efficiency.
Which of the following is not a source of rents?
a. Tariffs b. Logrolling c. Price supports d. Entry barriers
A(n) ______ statement is an objective, testable statement that describes what happens and why it happens
a. positive b. normative c. negative d. analytical