The conclusion arrived at from a kinked-demand oligopoly model is that:
a. oligopoly firms cannot maximize their profits.
b. oligopoly firms should keep prices at their current level.
c. all oligopoly firms should raise prices.
d. all oligopoly firms should lower prices.
e. oligopoly market structure will lead to lower prices than more competitive industries.
b
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Which of the following is true? a. U.S. imports are considered a credit item in the balance of payment, because the dollars sold to buy the necessary foreign currency add to foreign claims against U.S. buyers. b. When the U.S. runs a trade deficit in goods and services with the rest of the world, the rest of the world must be running a trade surplus in goods and services with the U.S. c. When
the U.S. runs a trade deficit in goods, it must run a trade surplus in services. d. None of the above is true.
A country should always specialize in the production of any product for which it holds an absolute advantage
Indicate whether the statement is true or false