Suppose than an oligopolist is charging $20 per unit of output and selling 28 units each day. What is its daily total revenue? $ Also suppose that previously it had lowered its price from $20 to $18, rivals matched the price cut, and the firm's sales increased from 28 to 29 units. It also previously raised its price from $20 to $29, rivals ignored the price hike, and the firm's daily total revenue came in at $550. Which of the following is most logical to conclude? The firm's demand curve is a curve with a kink in it
Suppose than an oligopolist is charging $20 per unit of output and selling 28 units each day. What is its daily total revenue? $ Also suppose that previously it had lowered its price from $20 to $18, rivals matched the price cut, and the firm's sales increased from 28 to 29 units. It also previously raised its price from $20 to $29, rivals ignored the price hike, and the firm's daily total revenue came in at $550. Which of the following is most logical to conclude? The firm's demand curve is a curve with a kink in it
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Suppose than an oligopolist is charging $20 per unit of output and selling 28 units each day.
What is its daily total revenue? $
Also suppose that previously it had lowered its price from $20 to $18, rivals matched the price cut, and the firm's sales increased from
28 to 29 units. It also previously raised its price from $20 to $29, rivals ignored the price hike, and the firm's daily total revenue came
in at $550.
Which of the following is most logical to conclude?
The firm's demand curve is a curve with a kink in it
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Transcribed Image Text:Suppose than an oligopolist is charging $20 per unit of output and selling 28 units each day.
What is its daily total revenue? $
Also suppose that previously it had lowered its price from $20 to $18, rivals matched the price cut, and the firm's sales increased from
28 to 29 units. It also previously raised its price from $20 to $29, rivals ignored the price hike, and the firm's daily total revenue came
in at $550.
Which of the following is most logical to conclude?
The firm's demand curve is a curve with a kink in it
<Prev
3 of 9
Next >
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