An oligopolist operating with a kinked demand curve would expect rivals to match its price:
a. increases.
b. decreases.
c. both a and b.
d. neither a nor b.
b
You might also like to view...
Diseconomies of scale are associated with:
A. a downward-sloping long-run average cost curve. B. an upward-sloping long-run average cost curve. C. an upward-sloping short-run average cost curve. D. a downward-sloping short-run average cost curve.
The figure above shows a perfectly competitive firm. To maximize its profit, the firm will produce ________ units of output and the price will be ________ for a unit
A) 30; $40 B) 30; $30 C) 20; $40 D) 20; $30
Why might the money price for something be higher than the opportunity cost? Why might it be lower? Give an example of each to illustrate your answer
Suppose that the total expenditures for a typical household in 2015 equaled $5,500 per month, while the cost of purchasing exactly the same items in 2017 was $6,875. If 2015 is the base year, the CPI for the year 2017 equals:
A. 1.20 B. 1.25 C. 1.00 D. 0.80