Which of the following is cited as a problem with the kinked demand curve model?
A) It assumes that firms do not attempt to maximize profits.
B) It assumes that firms determine the profit-maximizing level of output by equating marginal cost and average variable cost.
C) It does not explain how the equilibrium market price is determined.
D) It does not explain the price stickiness that is routinely observed in oligopolistic markets.
C
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Which of the following is true?
A) If consumption of a good gives rise to a positive externality, it can be internalized by taxing the producers of the good. B) If production of a good gives rise to a negative externality, it can be internalized by taxing the producers of the good. C) If production of a good gives rise to a positive externality, it can be internalized by taxing the consumers of the good. D) If consumption of a good gives rise to a negative externality, it can be internalized by subsidizing the purchase of the good.
M2 includes
A) large-denomination time deposits. B) institutional MMMFs. C) commercial paper. D) M1.
Investment value is based on the __________________ of the individual investor, not the market value in general.
Fill in the blank(s) with the appropriate word(s).
The prime rate is the interest rate charged to a bank's best customers
a. true b. false