A perfectly elastic demand curve is represented by a vertical line

A specific investment is

A) one that can only be used in a transaction with a single firm. B) an investment that cannot be physically moved, such as an oil refinery. C) reduces the possibility of a holdup occurring. D) is more expensive than a general investment.

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