A Kink in the Demand Curve Facing an Oligopolist Is

question 15

Multiple Choice

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

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

---

Definitions:

Loudness

A subjective perception of the intensity of a sound, influenced by its amplitude and frequency, and how it is received and interpreted by the ear and brain.

Frequency

How often something happens within a certain period or within a specific sample.

Moon Illusion

A perceptual phenomenon where the moon appears larger when it is closer to the horizon than when it is higher in the sky.

Perceived Distance

The subjective experience or estimation of how far away an object is from the observer.