Author Question: Oligopolies with kinked demand curves change their prices quickly and frequently. a. True b. False ... (Read 51 times)

corkyiscool3328 · **on:** Jun 30, 2018

Oligopolies with kinked demand curves change their prices quickly and frequently.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Suppose the fixed cost of building a nuclear power plant is 1 billion. Suppose also that the only variable cost is the labor of Homer Simpson, and he earns 10 per hour. If the plant generates 1,000 kilowatts each hour, and has already generated 1 billion kilowatts, what can you say about the marginal cost of the next kilowatt?
a. b and e.
b. The marginal cost is equal to .01.
c. The marginal cost is equal to 1.01.
d. The marginal cost is rising.
e. The marginal cost is falling.