A Prediction from the Kinked Demand Curve Model of Oligopoly

question 178

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:

Transference

A patient’s tendency to respond to the analyst or therapist in ways that re-create her responses to major figures in her life.

Catharsis

A therapeutic process of releasing and thereby providing relief from strong or repressed emotions.

Unconscious Wishes

Desires that reside outside of conscious awareness, often influencing behavior and thought patterns.

Previously Unconscious

Refers to thoughts, feelings, desires, or memories that were not accessible to conscious awareness but have become conscious.