If an Oligopoly Is Faced with a Kinked-Demand Curve That

question 45

Multiple Choice

If an oligopoly is faced with a kinked-demand curve that is relatively elastic above, and relatively inelastic below, the going price, then it will

• A) increase total revenue by increasing price but lower total revenue by decreasing price.
• B) decrease total revenue by either increasing or decreasing price.
• C) increase total revenue by either increasing or decreasing price.
• D) increase total revenue by decreasing price but lower total revenue by increasing price.

---

Definitions:

Beta-Globin

A component of hemoglobin, the protein in red blood cells that carries oxygen, responsible for one part of its two-part structure.

Sickle Cell Anemia

A genetic blood disorder characterized by red blood cells that assume an abnormal, rigid, sickle shape, leading to various complications like pain and anemia.

Hydrophobic

Pertaining to molecules or parts of molecules that repel water, often non-polar substances that do not readily dissolve in water.

Quaternary

Relating to the most recent period of the geological time scale, which follows the Tertiary period and encompasses the current time.