Can someone please help me with these microeconomic questions?

Posted on 2014-12-16 05:30:00 in Economics by NOELLE

1. Under the kinked demand curve theory

A) the demand curve is perfectly elastic.
B) firms will maximize their profits if they equate marginal cost to marginal revenue.
C) the demand curve is perfectly inelastic.
D) firms will not equate marginal cost to marginal revenue.

2. An implication of the kinked demand curve model is that

A) oligopolists can replicate the monopoly price-output combination by cooperating.
B) advertising intensity is greater under oligopoly than any other market structure.
C) prices are more rigid under oligopoly than any other market structure.
D) oligopolies are more profitable than firms in any other market structure are.

3. A rule of thumb in the employment of resources is to set

A) marginal revenue product (MRP) equal to marginal factor cost (MFC).
B) marginal physical product equal to marginal resource cost. C) marginal revenue (MR) equal to marginal cost (MC).
D) none of the above

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