A Prediction from the Kinked-Demand Curve Model of Noncollusive Oligopoly

question 29

Multiple Choice

A prediction from the kinked-demand curve model of noncollusive oligopoly is that,for an individual firm,small changes in:

• A) demand will not 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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