Cheese and crackers! Get a load of this economics question!!?

1) To maximize sales revenue, an oligopolist will expand output until the elasticity of demand becomes...?


a) negative


b) zero


c) one


d) infinite





2) Sales maximization may be a goal of a firm if...?


a) firms are managed by irrational persons


b) the firm has no way to measure profitability


c) the firm is privately held, and there is no separation between ownership and control.


d) managerial bonuses are based on sales revenue instead of profitability.





3) An oligopolist's effective demand curve will be kinked if the firm...?


a) is acting as a price leader in the industry


b) expects other firms to match price cuts but not price increases.


c) expect other firms to match all price changes.


d) fears new entry into the industry.

Cheese and crackers! Get a load of this economics question!!?
2 is d.