One practical implication of a kinked market supply curve is that:
A) producer surplus is not defined at the kink point.
B) the MC = MR rule does not hold at the kink point.
C) the market supply elasticity for a price increase may be different than the market supply elasticity for a price decrease at the kink point.
D) All of the above are true.
C
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Economies of scale are illustrated by:
A) a downward sloping long-run average cost curve. B) a flat long-run average cost curve. C) an upward-sloping long-run average cost curve. D) a downward-sloping short-run average total cost curve.
It is less likely for oligopolists to maintain high prices in a repeated game than when the firms must choose one strategy to follow for the entire lifetime of the firm.
Answer the following statement true (T) or false (F)
All of the following are market determinants of exchange rates EXCEPT
A. changes in productivity in one country relative to another. B. changes in the relative prices of goods and services within a country. C. changes in real interest rates in one country relative to another. D. changes in product preferences between countries.
Natural comparative advantage comes from factor endowments.
Answer the following statement true (T) or false (F)