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.

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Definitions:

Batouala

A novel by René Maran, notable for its critical portrayal of colonialism in Africa; it was awarded the Prix Goncourt in 1921.

Harlem Renaissance

A cultural, social, and artistic explosion centered in Harlem, New York, during the 1920s, marking a period of rich cultural growth among African Americans.

René Maran

A French writer of Guyanese descent who won the 1921 Goncourt Prize for his novel "Batouala," a pioneering work that represented a significant breakthrough in representing African culture and critiques of colonialism.

Jessie Redmond Fauset

A leading figure in the Harlem Renaissance, an African American editor, poet, essayist, and novelist who played a pivotal role in nurturing young black authors.