If a Profit-Maximizing Oligopolist Has a Kinked Demand Curve, a Downward

question 40

Multiple Choice

If a profit-maximizing oligopolist has a kinked demand curve, a downward shift in its marginal cost curve:

• A) may not affect output or price.
• B) increases output or price but not both.
• C) reduces both output and price.
• D) reduces output but not price.

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Definitions:

Normally Distributed

Referring to a distribution that follows a normal curve, characterized by its bell shape and defined by its mean and standard deviation.

Ordinal Data

A type of categorical data in which the order or ranking of the values is significant, but the difference between those values is not necessarily consistent or defined.

Interval Data

A type of quantitative data in which the intervals between values are meaningful and consistent, but there is no true zero point, allowing for the measurement of difference and comparison.

Validity

The extent to which a test, measurement, or study accurately reflects or assesses the specific concept it is intended to measure.