A Prediction from the Kinked Demand Curve Model of Oligopoly

question 146

Multiple Choice

A prediction from the kinked demand curve model of oligopoly is that, for an individual firm, small changes in

• A)demand will lead to changes in price or output.
• B)marginal revenue will lead to changes in price and output.
• C)marginal cost will lead to changes in price and output.
• D)marginal cost will not lead to changes in price or output.

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Definitions:

Composite Volcano

A common type of volcano constructed of alternating layers of lava, pyroclastic deposits, and mass-wasting deposits, including mudflows; synonym: stratovolcano.

Pyroclastic Deposits

Accumulations of volcanic material ejected during an eruption, including ash, bombs, and blocks.

Composite Volcano

A volcano built by both lava flows and pyroclastic eruptions, typically featuring steep profiles and explosive activity.

Shield Volcano

A broad, domed volcano with gently sloping sides, primarily formed by the eruption of low-viscosity lava.