The kinked demand curve model of oligopoly assumes the elasticity of demand ?

Profit Maximizing Under Perfect Competition And Monopoly 22/01/2021

A. in response to a price increase is less elastic than the elasticity of demand in response to a price decrease
B. is perfectly elastic if price increases and perfectly inelastic if price decreases
C. is constant regardless of whether price increase of decrease.
D. in response to a price increases is more elastic than the elasticity of demand in response to a price decrease

Related Mcqs:

    Relative to a competitively organized industry a monopoly ?
    A. Produces less output, charges higher prices and earns economic profits. B. Produces less output, charges lower prices and earns only a normal profit C. produces more output, charges higher prices and earns economics profits D. produces less output, charges lower prices and earns economic profits...
    In the long run ?
    A. all firms must make economic profits. B. there are no fixed factors of production C. a firm can vary all inputs, but it cannot change the mix of inputs it uses. D. a firm can shut down, but it cannot exit the industry...
    Diminishing marginal return implies ?
    A. decreasing average fixed costs. B. decreasing marginal costs. C. decreasing average variable costs. D. increasing marginal costs....
    In contestable markets, large oligopolistic firms, end up behaving like ?
    A. perfectly competitive firms B. a cartel C. a monopoly D. monopolistically competitive firms....
    In monopolistic competition firms achieve some degree of market power ?
    A. by producing differentiated products B. because of barriers to exit from the industry C. by virtue of size alone D. because of barriers to entry into the industry...

Leave a Reply

Your email address will not be published. Required fields are marked *