Micro test9

Micro test9 - 1) The characteristic most closely associated...

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1 ) The characteristic most closely associated with oligopoly is:  (10pts) A few large producers 2 ) In an oligopolistic market there are:  (10pts) Few sellers 3 ) Productive efficiency is not realized in monopolistic competition  because production occurs where  (10pts) ATC is greater than minmum ATC 3 ) Productive efficiency is not realized in monopolistic competition  because production occurs where  (10pts) ATC is greater than minmum ATC 4 ) How can the kinked-demand curve be used to explain why oligopoly  prices are relatively inflexible?  (10pts) In the kinked-demand theory of oligopoly, price is relatively inflexible  because a firm contemplating a price change assumes that its rivals will  follow a price cut and ignore a price increase.it will lose considerable  amounts of sales if it raises its price because it will be undersold by rivals  who do not change their price. Max Characters: 400
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Micro test9 - 1) The characteristic most closely associated...

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