The Kinked Demand Curve Explains the Observation That in Oligopoly

question 27

Multiple Choice

The kinked demand curve explains the observation that in oligopoly markets

• A)Rivals match price increases.
• B)Rivals do not match price reductions.
• C)Prices may not change even in the face of cost increases.

---

Definitions:

Flexibility

Flexibility in a workplace context refers to the adaptability of an organization and its employees to changes or new demands, including work schedules, tasks, and strategies.

Adaptability

The ability to adjust oneself readily to different conditions and environments.

Continuous-Process Production

A production process where raw materials are continuously transformed by an automated system.

Highly-Automated

Describing a system or process that extensively uses automation technology to reduce or eliminate human intervention.