One practical implication of a kinked market supply curve is ...

[jake]

One practical implication of a kinked market supply curve is that:
 
  A) producer surplus is not defined at the kink point.
  B) the MC = MR rule does not hold at the kink point.
  C) the market supply elasticity for a price increase may be different than the market supply elasticity for a price decrease at the kink point.
  D) All of the above are true.

Question 2

In insurance markets, moral hazard creates economic inefficiency because:
 
  A) insurance companies are price setters rather than price takers.
  B) insurance products are not homogenous goods.
  C) there are many buyers but only a few sellers.
  D) insured individuals do not correctly perceive the costs or benefits of their actions.

[kilada]

Answer to Question 1

C

Answer to Question 2

D

[jake]

Excellent

[aliotak]

TYSM