The Assumption(s) Made to Construct a Kinked-Demand Oligopoly Model Is

question 34

Multiple Choice

The assumption(s) made to construct a kinked-demand oligopoly model is (are) that:

• A) all firms in the industry will ignore the price changes made by any one firm.
• B) any price decrease will be ignored, but price increases will be followed.
• C) all firms will follow a price decrease but will ignore any price increase.
• D) all price changes made by any firm will be followed by all of the other firms.
• E) price can go up, but it cannot go down.

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Definitions:

Agenda

A calendar, containing both specific and vague items, that covers short-term goals and long-term objectives.