The Kinked-Demand Curve Model Shows That Oligopolistic Firms Tend to Change

question 5

True/False

The kinked-demand curve model shows that oligopolistic firms tend to change their prices frequently.

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Definitions:

Transfer Price

The price at which goods or services are sold between divisions within the same company.

External Market

The environment outside a business in which it operates, dealing with the supply, demand, and pricing of goods and services.

Variable Manufacturing Cost

Costs that vary directly with the level of production output, such as raw materials and direct labor.

Revenue Centre Manager

A manager responsible for generating income and overseeing the revenue generation activities of a particular business unit, without direct control over costs or investments.