A Kink in the Demand Curve Facing an Oligopolist Is

question 40

Multiple Choice

A kink in the demand curve facing an oligopolist is caused by:

• A) rapidly rising marginal revenues.
• B) excessive advertising.
• C) the belief that competitors will follow price increases but not match price decreases.
• D) the tendency of competitors to follow price reductions but not price increases.

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Definitions:

Behavioral Perspective

An approach in psychology focusing on observable behaviors and the ways in which the environment and learning influence actions.

Social-Cultural

Pertaining to the influences that social and cultural contexts have on human behavior and thinking.

Parenting Styles

The systematic approaches to child-rearing defined by the balance of responsiveness and demandingness; includes authoritative, authoritarian, permissive, and uninvolved styles.

Ethnic Groups

Communities or populations sharing a common cultural background, heritage, and language, often distinguished by traditions, social behavior, and ancestry.