If an Oligopolistic Manufacturer Believes That He Faces a Kinked

question 76

Multiple Choice

If an oligopolistic manufacturer believes that he faces a kinked demand curve for his product, he thinks his competitors will ______ if he lowers his price and ____ if he raises his price.

• A)lower their prices; raise their prices
• B)lower their prices; not raise their prices
• C)not lower their prices; raise their prices
• D)not lower their prices; not raise their prices

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Definitions:

Industrialization

The transformative process in which countries move from primarily agrarian economies to ones based on the mass production of goods and services using industrial means.

Global Migrations

The movements of populations across international borders or within countries on a large scale, often motivated by factors like war, economic opportunities, or environmental pressures.

Urbanization

The process by which towns and cities are formed and become larger as more people begin living and working in central areas.

European City

Refers to urban centers located within the continent of Europe, characterized by historical architecture, cultural heritage, and modern urban living.