If output is set at the kink of the kinked demand model, then there:
A. Is a strong incentive for rivals to decrease prices
B. Is a strong incentive for rivals to increase prices
C. Is one price at which marginal revenue equals marginal cost
D. Are several prices at which marginal revenue equals marginal cost
D. Are several prices at which marginal revenue equals marginal cost
You might also like to view...
By 1910 the top ten industries included printing, malt liquors, tobacco cars and railroad cars. The introduction of these new top ten industries indicated
(a) a shift in consumer preferences toward luxury items. (b) an increase in real incomes in the U.S., permitting people to purchase luxury items. (c) a smaller percentage of total consumption expenditures on essential food, clothing and shelter. (d) all of the above.
Consumer surplus is the:
a. number of consumers who are excluded from a market because of scarcity. b. amount of a good that consumers will buy at a price below the equilibrium price. c. amount consumers are willing to pay for a good minus the amount the consumers actually pay for it. d. amount consumers are willing to pay for a good minus the cost of producing the good.
Why does the price level in a perfectly competitive market move toward the zero-profit point?
a. Because firms enter and exit the market in response to gains and losses b. Because short-run losses reverse the effects of long-run gains c. Because profitable firms increase short-run productivity d. Because firms operate below the average cost curve
If Andrea sells Dan a Wii gaming system for $150,
a. the well-being of both parties will be unchanged. b. Andrea will gain from the transaction, but Dan will lose. c. Dan will gain from the transaction, but Andrea will lose. d. both Dan and Andrea will gain from this transaction.