Question

In an oligopoly model with a kinked demand curve, a decrease in a firm's marginal cost general leads to _____ .

a. None of the options are correct.
b. reduced output and a higher price
c. increased output and a lower price
d. higher output and a higher price

Answer 1

Option a (None of the options are correct) is the right alternative.

Step-by-step explanation:

• A manner of opportunities and management when two or even more businesses have quite a share of the economy would be characterized as an oligopoly. Those who can determine production and prices throughout the combination.
• Every opportunity to make simplification generalizations underlines one facet of that same oligopoly situation.

Thus the above option is the correct one.