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Homework answers / question archive / Which of the following is not a characteristic of a kinked demand curve? A
Which of the following is not a characteristic of a kinked demand curve?
A. A range of marginal costs over which MR = MC
B. P < MC
C. Interdependence of rivals
D. Pricing at the kink
E. Demand curve discontinuous at the kink
Which of the following is not a characteristic of a kinked demand curve? (D) Pricing at the kink. Because of the kink in the curve, the marginal revenue is horizontal for a range of prices, which results in the point where marginal cost and marginal revenue (the profit-maximizing output level) typically occurring at the kinked level of output. Because of this, the price tends to be at the point where the kink in the demand curve exists.