A. there is a gap in the marginal revenue curve within which changes in marginal cost will not affect output or price. B. demand is inelastic above and elastic below the going price. C. the model assumes firms are engaging in some form of
collusion. D. the associated marginal revenue curve is perfectly elastic at the going price.
A. demand curve will be less elastic than if the other oligopolists matched X's price changes.
B. demand curve will be more elastic than if the other oligopolists matched X's price changes.
C. marginal revenue curve will have a vertical gap.
D. demand and marginal revenue curves will coincide.
Answer: B
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