An oligopoly is faced with a kinked-demand curve that is relatively elastic above, and relatively inelastic below, the going price, then it will:
A. increase total revenue by increasing price but lower total revenue by decreasing price.
B. decrease total revenue by either increasing or decreasing price.
C. increase total revenue by either increasing or decreasing price.
D. increase total revenue by decreasing price but lower total revenue by increasing price.
Answer: B
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If labor productivity in the health care industry rises very slowly relative to wages and salaries in the industry, this would tend to:
A. increase the demand for health care. B. decrease the demand for health care. C. increase the supply of health care. D. increase the cost of health care.