An increase in marginal cost that remains within the gap of the marginal revenue curve of a kinked demand oligopolist will:
a. keep price and output the same.
b. raise price and decrease output.
c. lower price and increase output.
d. raise price and raise output.
e. lower price and lower output.
a
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If U.S. prices increase relative to the rest of the world, we would expect:
A. net exports to be unaffected. B. net exports to increase. C. net exports to decrease. D. government spending to increase.
Higher interest rates lead to lower investment spending.
Answer the following statement true (T) or false (F)
If the economy relies entirely on the market mechanism to answer the WHAT, HOW, and FOR WHOM questions, it tends to
A. Overproduce goods that yield external benefits and overproduce those that generate external costs. B. Underproduce goods that yield external benefits and underproduce those that generate external costs. C. Overproduce goods that yield external benefits and underproduce those that generate external costs. D. Underproduce goods that yield external benefits and overproduce those that generate external costs.
The Fed’s loan that effectively nationalized AIG was approved by Congress.
Answer the following statement true (T) or false (F)