(Figure: Kinked Demand Curves and Oligopolies) Based on the Graph

question 250

Multiple Choice

(Figure: Kinked Demand Curves and Oligopolies) Based on the graph, an oligopolistic firm facing a kinked demand curve will NOT increase its price when its marginal cost fluctuates between which two points?

• A) a and b
• B) a and c
• C) b and c
• D) a and d

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Independent Variable

In an experiment, the variable that is manipulated or changed to observe its effect on the dependent variable.

Sweets

Food items that are rich in sugar and often used as a treat or dessert.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations to the independent variable.