If an Oligopolist's Demand Curve Has a "Kink" in It

question 206

Multiple Choice

If an oligopolist's demand curve has a "kink" in it, then over some interval,

• A)the oligopolist's marginal cost curve will have a break in it.
• B)the oligopolist need not fear entry into the industry by new firms.
• C)the oligopolist's competitors will not react to its price changes, either up or down.
• D)changes in marginal cost will not cause a change in the profit-maximizing price.

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Definitions:

Diabetes

A metabolic disorder characterized by high blood sugar levels over a prolonged period, due to insulin resistance or inadequate insulin production.

Starvation

A severe deficiency in caloric intake or nutrient absorption, leading to significant weight loss, malnutrition, and potentially death if not addressed.

Urinary Bladder

A hollow muscular organ that stores urine from the kidneys before disposal by urination.

Pelvic Cavity

A body cavity in the lower abdomen that houses the reproductive organs, bladder, and rectum.