One practical implication of a kinked market supply curve is that:
A) producer surplus is not defined at the kink point.
B) the MC = MR rule does not hold at the kink point.
C) the market supply elasticity for a price increase may be different than the market supply elasticity for a price decrease at the kink point.
D) All of the above are true.
C
Economics
You might also like to view...
Assume there are two major political parties: the Conservatives and the Liberals. What does the median voter theorem imply about the nature of the platforms (that is, policy stances) of the Conservatives and Liberals?
Economics
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Economics