When a company is faced by a kinked demand curve, the marginal ...

[cool]

When a company is faced by a kinked demand curve, the marginal revenue curve
 
  A) will be upward sloping.
  B) will be horizontal.
  C) will always be zero at the quantity produced.
  D) will be discontinuous.

Question 2

The Compensating Variation for an increase in the price of a good is
 
  A) the minimum amount of money a consumer would accept to voluntarily accept the price increase.
  B) the maximum amount of money a consumer would pay to avoid the price increase.
  C) the change in consumer surplus resulting from a price increase.
  D) the change in utility resulting from the increase in price.

[tmlewis4706]

Answer to Question 1

D

Answer to Question 2

A