One practical implication of a kinked market supply curve is that:
A) producer surplus is not defined at the kink point.
B) the MC = MR rule does not hold at the kink point.
C) the market supply elasticity for a price increase may be different than the market supply elasticity for a price decrease at the kink point.
D) All of the above are true.

Question

Quizplus · Accepted Answer

A kinked supply curve implies that the elasticity of supply can differ for price increases versus price decreases, reflecting different producer responses to price changes.

One Practical Implication of a Kinked Market Supply Curve Is