Author Question: Assume that an oligopolist has a kinked demand curve. Suppose that the marginal cost curve passes ... (Read 31 times)

jho37 · **on:** Jun 30, 2018

Assume that an oligopolist has a kinked demand curve. Suppose that the marginal cost curve passes through the gap in the marginal revenue curve. This means price and output will be shown by a point:
a. above the curve.
b. below the curve.
c. at the kink
d. on the upper part of the curve.
e. on the lower part of the curve.

Question 2

In the short run, a firm will eventually experience rising per-unit costs because of:
a. economies of scale.
b. diseconomies of scale.
c. the law of supply.
d. the law of diminishing returns.