If Your Competitors Will Follow Your Price Cuts and Ignore

question 108

Multiple Choice

If your competitors will follow your price cuts and ignore price hikes,your firm

• A)faces perfect competition.
• B)faces a kinked demand curve.
• C)is the marginal price leader of an oligopoly.
• D)must be the most efficient firm in the industry.

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Definitions:

Excitation

The process of stimulating activity in an organism or in any of its parts, often leading to increased activity or responsiveness.

Synapses

The junctions between neurons through which they communicate with each other using chemical or electrical signals.

Presynaptic Neuron

The neuron that sends a signal across the synapse to another neuron.

Neurotransmitter

Chemical substances released by neurons to transmit signals across a synapse to another neuron or to a muscle or gland cell.