One shortcoming of the kinked-demand curve model of oligopoly is it does not explain:
A. why the firm is a least-cost producer.
B. why the marginal revenue curve is kinked.
C. how the going price gets determined in the first place.
D. what the equilibrium level of profits is for the firm.
Answer: C
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The demand for money curve depicts
A) an inverse relationship between the quantity of money demanded and the quantity of bonds demanded. B) a direct relationship between the quantity of money demanded and the quantity of bonds demanded. C) an inverse relationship between the quantity of money demanded and the interest rate. D) a direct relationship between the quantity of money demanded and the interest rate.
Persons who die before age 65 or soon thereafter, receive little or nothing from their Social Security payroll tax payments. Which of the following groups is harmed the most by this attribute of the Social Security retirement system?
a. High-income workers. b. Hispanics. c. Heavy cigarette smokers. d. College graduates.