Multiple Choice
If output is set at the kink of the kinked-demand model, then there
A) is a strong incentive for rivals to decrease prices.
B) is a strong incentive for rivals to increase prices.
C) is one price at which marginal revenue equals marginal cost.
D) are several prices at which marginal revenue equals marginal cost.
Correct Answer:
Verified
Correct Answer:
Verified
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