If an oligopolist is faced with a marginal revenue curve that has a gap in it, we may assume that:
A. it is colluding with its rivals to maximize joint profits.
B. its demand curve is kinked.
C. it is selling a standardized product.
D. it is selling a differentiated product.
Answer: B
You might also like to view...
From the last five recessions, the mildest two were
A) 1975 and 2008-09 recessions. B) 1981-82 and 2008-09 recessions. C) 1990-91 and 2001 recessions. D) 1975 and 2001 recessions.
The term “fiscal federalism” refers to
A. deficit financing of government programs. B. the power of Congress to tax and to determine how tax revenues are spent. C. transferring money between levels of government (for example, from a state government to a local government). D. the system under which governments ask citizens to vote on major revenue-raising measures (for example, on issues of municipal bonds).