The Kinked Demand Curve Model Assumes That an Oligopolistic Firm

question 72

Multiple Choice

The kinked demand curve model assumes that an oligopolistic firm recognizes its mutual interdependence with other firms and:

• A) while it does not collude with them, each firm acting independently, has determined that it can not gain by departing from the prevailing price.
• B) while it does not collude with them, each firm acting independently, has determined that it has much to be gained by departing from the prevailing price.
• C) collusive agreements in the industry lead to the tendency for all firms in an industry to charge approximately the same price for a specific product over long periods of time.
• D) collusive agreements in the industry lead to the tendency for all firms in an industry to charge approximately the same price for a specific product over a short period of time even though prices may vary widely over long periods of time.
• E) while it does not collude with them, each firm acting independently, has determined that it can not gain by departing from the prevailing price set by the industry leader.

---

Definitions:

Cover Message

A cover message is a written introduction or letter, often accompanying a resume, that provides context for the application, highlights key qualifications, and motivates the recipient to consider the applicant.

Candidate's Skills

The specific abilities and expertise that a job applicant possesses, relevant to the job they are applying for.

Hidden Job Market

Employment opportunities that are not advertised or publicly known, often filled through networking, referrals, or internal recruitment.

Work History

A record of a person's employment background, including job positions held, durations, responsibilities, and achievements.