Oligopolistic firms by intersecting two demand curve

In this illustrated figure kinked demand curve model, there two demand curves intersect at point a since the other oligopolistic firms: (w) are rapid to follow both price increases and price decreases by rival firms. (x) will follow price decreases but that are unlikely to follow a competitor’s price increase. (y) can’t decide whether the demand curve they face is D1 or D2. (z) face volatile and ever changing demands for their products.

244_Kinked Demand Curves.png

I need a good answer on the topic of Economics problems. Please give me your suggestion for the same by using above options.

View Complete Question

Related Questions in Microeconomics

Q : Slope of demand curve for negative

The slope of this illustrated graph demand curve for DVD games equivalents negative: (w) 0.2. (x) 0.50. (y) 5.0. (z) 2.0. 313_Price El</span></p>
</div>

</li>

</td>
</tr><tr>
<td>

<li>
<div class=

Q : Coefficient of elasticity of relatively

Please help me to solve the problem that is given below: A relatively price elastic demand curve would consist of a coefficient of elasticity of as: (w) ep = 1. (x) ep > 1. (y) ep < 1. (z) ep

Q : Marginal revenue at possible output

At each possible output level, there a purely competitive firm’s marginal revenue curve is: (w) above its demand curve. (x) below its demand curve. (y) identical along with its demand curve. (z) steeper than its demand curve.

Q : Increasing elasticity of the demand for

The elasticity of the demand for labor tends to rise as there are raises within the: (1) amount of capital utilized in a production process. (2) rate of automation in an industry. (3) difficulty in substituting between different resources. (4) share o

Q : Meaning of Caveat emptor I have a

I have a problem in economics on Meaning of Caveat emptor. Please help me in the following question. Caveat emptor signifies: (i) Let the seller beware! (ii) Everything else held steady. (iii) Let things modify if they should. (iv) Charge whatever the market will allo

Q : Price elasticity of demand as the

The price elasticity of demand is approximately measured as the absolute value of as: (1) (% change in Q) / (% change in Y). (2) ratio of the slopes of demand relative to supply. (3) (% change in Q) / (% change in P). (4) constant slo

Q : Find price elasticity of demand by arc

When the price of plastic moose heads increases from $25 to $35 and monthly sales drop by 2000 units to 1000 units, by using the arc elasticity formula, in that case their price elasticity of demand equals: (w) 1/3. (x) 3.0. (y) 2.0.

Q : Profit maximized by nondiscriminating

A nondiscriminating unregulated monopolist maximizes profit by: (w) charging the highest price the market will bear. (x) often changing designs and building in planned obsolescence. (y) setting marginal costs equal to marginal revenue [MC = MR]. (z) s

Q : Recognizing market demand for a good I

I have a problem in economics on recognizing market demand for a good. Please help me in the following question. To determine the market demand for a good, add up the: (1) Quantities supplied at each and every price. (2) Quantities demanded at each and every price. (3

Q : Present Value of Future Income The

The interest rate ____ as well as the present value of future income ____ when the preference for current income over the future income weakens. (w) falls; rises. (x) rises; falls. (y) falls; falls. (z) rises; rises.

Discover Q & A

Leading Solution Library

Avail More Than 1448310 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1934665
Asked

3,689

Active Tutors

1448310

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment