The reason for the kinked demand curve is that ? – McqOptions

MCQOPTIONS

1.	The reason for the kinked demand curve is that ?
A.	The oligopolist believes that competitors will match output increase but not output reduction
B.	The oligopolist believes that competitors will match price increase but not output reduction
C.	The oligopolist believers that competitors will match price cuts but not price rises
D.	The oligopolist believes that competitors will match price increase but not output increase
Answer» D. The oligopolist believes that competitors will match price increase but not output increase

Discussion

No Comment Found

Related MCQs

Which of the following statements is true about the impact of an increase in the price of lettuce ?
With a positive externality ?
With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal _____ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted ?
With free trade suppose that the rest of the world can supply computers to Norway at a price of $1,500 Norway’s imports will now equal. Compared to What occurred in the absence of trade, Norway’s consumers surplus will _____ and its producer surplus will ____. Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?
Which of the following shifts the demand for watches to the right ?
Which of the following is the government most likely to subsidies ?
Which company in the United States would likely be most concerned about Brazil’s dumping of steel in the U.S market ?
Which best describes consumer surplus ?
Where a tax can be shifted, the incidence depends on ?
When supply increase in an agricultural market farmer’s earning might fall because ?