If an increase in production costs (say, an increase in the wage rate) results in an upward shift in the MC curve, but the MC curve still passes through the MR gap created by the kinked demand curve, then the oligopolist will respond to that increase in production costs by
a. keeping price and output the same
b. raising price and decreasing output
c. lowering price and increasing output
d. raising price and raising output
e. lowering price and lowering output
A
You might also like to view...
In case of the textile industries of England in 1811, the invention of new technology that allowed workers to complete tasks in minutes that had previously taken hours, resulted in a(n):
A) increase in the demand for labor in the textile industries. B) increase in the quantity demanded of labor in the textile industries. C) decrease in the demand for labor in the textile industries. D) decrease in the quantity demanded of labor in the textile industries.
In the long run, the exchange rate between two currencies is
A) fixed. B) influenced by purchasing power parity. C) undefined. D) constant. E) determined so that the current account balance equals zero.