Assume that an oligopolist has a kinked demand curve. Suppose ...

[jho37]

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.

[IRincones]

Answer to Question 1

c

Answer to Question 2

d

[jho37]

Thanks for the timely response, appreciate it

[dreamfighter72]

Excellent