All the Following Explain Price Stickiness Except

question 12

Multiple Choice

All the following explain price stickiness except

• A) firms choose not to adjust prices until they can assess if changes in sales are temporary or permanent.
• B) the more firms produce, the lower the average cost of production. Therefore, firms are willing to not raise prices as long as they can sell more.
• C) firms may be concerned that consumers may be angered by price increases.
• D) firms may be concerned that their rivals may not match their price increases.

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Definitions:

Value Silence

The appreciation or acknowledgment of silence as an important and meaningful aspect of communication or interaction.

Barriers

Obstacles or factors that impede progress, communication, or achievement.

Model of Communication

A theoretical framework describing how messages are sent and received between communicators.

Communication Model

A framework that outlines the process of transmitting information and understanding between two or more participants.