Under the Kinked Demand Curve Model, a Small Increase in Marginal

Multiple Choice

Under the kinked demand curve model, a small increase in marginal cost will lead to:

A) an increase in output level and a decrease in price.
B) a decrease in output level and an increase in price.
C) a decrease in output level and no change in price.
D) neither a change in output level nor a change in price.