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

question 55

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.