Refer to the Accompanying Table A)60 Cakes

question 23

Multiple Choice

Refer to the accompanying table. Julia's opportunity cost of making a pie is: $$\begin{array} { | l | c | c | } \hline & \text { Time ta Make a Pie } & \text { Tirne to Muke a Cake } \\\hline \text { Martha } & 60 \text {minutes } & 80 \text { minutes } \\\hline \text { Julia } & 50 \text { minutes } & 60 \text { minutes } \\\hline\end{array}$$  

• A)60 cakes.
• B)6 cakes.
• C)6/5 of a cake.
• D)5/6 of a cake.

---

Definitions:

Oligopoly Pricing

A market pricing strategy used in an oligopoly, where a few firms dominate the market and can significantly influence prices through competitive and collaborative dynamics.

Sticky

Describes prices or wages that are slow to adjust or change in response to changes in supply, demand, or the broader economic environment.

Price Discrimination

A pricing policy in which the same provider sells the same or nearly the same products or services at various prices across different markets.

Kinked-demand Curve Model

An economic model that explains price stability in oligopolistic markets by suggesting that businesses may not raise or lower prices due to the segmented demand curve.