The theory of the kinked demand curve is used to explain
A. bizarre corporate behavior.
B. sales maximization.
C. the maximin criterion.
D. sticky prices in oligopolies.
Answer: D
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How does chain weighting lead to a different measurement of real GDP than the methods used by the BEA prior to 1996? What are the advantages of chain weighting? What are the disadvantages?
What will be an ideal response?
Which of the following cases is an OCA that is NOT preferred by a home country?
A) The home country faces symmetric shocks with the other country. B) The labor market is well integrated, allowing for migration. C) The home country faces asymmetric shocks with the other country. D) The home economy is well integrated with the other country, carrying out vast amounts of trade.
________ shifts the IS curve to the right.
A. An increase in government spending B. An increase in the price level C. A decrease in the Z factors D. A decrease in government spending
An increase in the average tax rate, with the marginal tax rate held constant, will
A. increase the amount of labor supplied at any real wage. B. not affect the amount of labor supplied at any real wage. C. decrease the amount of labor supplied at any real wage. D. increase the amount of labor supplied at any real wage if the average tax rate is above the marginal tax rate, but decrease the amount of labor supplied at any real wage if the average tax rate is below the marginal tax rate.