Assume That an Oligopolist Faces a Kinked Demand Curve

Multiple Choice

Assume that an oligopolist faces a kinked demand curve. Suppose that the marginal cost curve passes through the gap in the marginal revenue curve. Price and output will be determined

A) drawing a line from the point where MC = P to both the vertical and horizontal axis, the vertical indicating output, the horizontal indicating price
B) drawing a line from the point where MC = P to both the vertical and horizontal axis, the vertical indicating price, the horizontal indicating output
C) at the kink
D) at ATC = MC which, too, passes through the gap
E) to be zero because the MC curve passes through the gap