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4) According to Kinked Demand theory                a) Firms incur losses                b) Firms have less revenue                c) An increase in price by the firm is not followed by others                d) None of the above

4) According to Kinked Demand theory                a) Firms incur losses                b) Firms have less revenue                c) An increase in price by the firm is not followed by others                d) None of the above

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Subject: Menagerial economics & policy

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4) According to Kinked Demand theory

               a) Firms incur losses

               b) Firms have less revenue

               c) An increase in price by the firm is not followed by others

               d) None of the above

5) If AFC is 40 and AVC is 80 then ATC is

               a) 40

               b) 120

               c) 100

               d) None of the above

6) The following statement about MC and AC is correct

               a) "When MC is falling , AC is falling "

               b) AC equals MC at MCs lowest point

               c) "When MC exceeds AC, AC must be rising "

               d) "When AC exceeds MC, MC must be rising "

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