The Kinked Oligopoly Demand Curve Does Not Describe the Demand

question 80

Multiple Choice

The kinked oligopoly demand curve does not describe the demand curve for monopolistic competition because in monopolistically competitive markets,

• A)Firms are not as interdependent as oligopolistic firms.
• B)Firms have no market power.
• C)There is not as much product differentiation as in oligopoly.
• D)There is no nonprice competition.

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Definitions:

Stocks

Shares of ownership in a company that entitle the holder to a claim on part of the company’s assets and earnings.

Present Value

The current-day worth of an anticipated future money amount or cash flow sequences, calculated using a particular rate of return.

Received

Refers to any amount of money received by a party or business, usually in the context of payments for goods or services.

Annually

Pertaining to an event or activity that occurs once every year.