If an Oligopolist Is Faced with a Marginal Revenue Curve

question 57

Multiple Choice

If an oligopolist is faced with a marginal revenue curve that has a gap in it, we may assume that

• A) it is colluding with its rivals to maximize joint profits.
• B) its demand curve is kinked.
• C) it is selling a standardized product.
• D) it is selling a differentiated product.

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Definitions:

Delusional Disorder

A psychotic disorder characterized by persistent false beliefs.

Plausible

Appearing reasonable or probable, often used in the context of arguments or hypotheses that seem likely to be true.

Bizarre

Extremely strange or unusual in a way that might be puzzling or difficult to understand.

Conversion Disorder

A disorder in which anxiety or unconscious conflicts are “converted” into physical symptoms that often have the effect of helping the person cope with anxiety or conflict.