The kinked demand curve model of oligopoly explains why oligopoly
a. firms cannot maximize their profits
b. firms do not lower prices to increase market share
c. firms tend to increase price
d. firms tend to decrease price to their minimum ATC
e. tends to generate a higher economic profit than in any other market structure
B
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The Mexican peso crisis of 1994 and 1995 was directly related to
A) the start of NAFTA. B) a large capital account surplus. C) a large capital account deficit. D) an undervalued peso. E) a large current account surplus.
About one out of every _________ Hispanics is poor.
Fill in the blank(s) with the appropriate word(s).
A price ceiling that is set above the equilibrium price will result in:
A. a loss in total economic surplus. B. a market price that is above the equilibrium price. C. no change in total economic surplus. D. an increase in consumer surplus.
The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive.
Moe's short run supply curve is:
A. curve A above curve C. B. curve C to the right of curve A. C. curve B to the right of curve A. D. curve A above curve B.