A kink in the demand curve facing an oligopolist is caused by:
a. the belief that competitors will follow price increases but not match price decreases.
b. excessive advertising.
c. rapidly rising marginal revenues.
d. the assumption that competitors will follow price reductions but not price increases.
Question 2
A farm is able to produce 10,000 bushels of peanuts per season on 10 acres. Assume it adds one more acre and is able to produce 12,000 bushels per season. The marginal product of the additional acre of land for this farm is:
a. 10,000 bushels per acre per year.
b. 1,200 bushels per acre per year.
c. 2,000 bushels per acre per year.
d. 12,000 bushels per acre per year.
Mutations caused by air pollution.
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At what speed does Grogzetti need to take the curve to avoid sliding?
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