The conclusion arrived at from a kinked-demand oligopoly model is that:
a. oligopoly firms cannot maximize their profits.
b. oligopoly firms should keep prices at their current level.
c. all oligopoly firms should raise prices.
d. all oligopoly firms should lower prices.
e. oligopoly market structure will lead to lower prices than more competitive industries.
b
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Explain why each of the following is considered an economic issue:
a. whether to spend Saturday afternoon at a football game b. obtaining tickets to a U2 concert c. your university considers your application for one of 25 available scholarships
The law of demand says that as the price of a good rises, the quantity demanded of the good tends to fall
a. True b. False
Investment from abroad
a. is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries. b. is viewed by economists as a way to increase growth. c. often requires removing restrictions that governments have imposed on foreign ownership of domestic capital. d. All of the above are correct.
Suppose you have one U.S. dollar with which you wish to purchase U.K. (one-year) bonds in period t. Which of the following expressions represents the amount of U.S. dollars you will receive in one year (i.e., period t + 1 ) from purchasing U.K. bonds in period t?
A) i B) 1 + i C) (1 + i)Eet+1/Et D) (1 + i)Et/Eet+1 E) none of the above