3. An oligopolist in a market where rivalry prevails is operating at the kink in its...

 

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3. An oligopolist in a market where rivalry prevails is operating at the kink in its demand curve, with a daily output of 400 units and a price of $5. a. At this output level, what is the shape of the business's marginal revenue curve? b. If costs for this business were to undergo a rise at every output level, would this business necessarily raise its price? Why? 3. An oligopolist in a market where rivalry prevails is operating at the kink in its demand curve, with a daily output of 400 units and a price of $5. a. At this output level, what is the shape of the business's marginal revenue curve? b. If costs for this business were to undergo a rise at every output level, would this business necessarily raise its price? Why?

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Solution a The shape of the businesss marginal revenue curve is downward sloping As the business pro... View the full answer