The Kinked-Demand Curve of an Oligopolist Is Based on the Assumption

question 240

Multiple Choice

The kinked-demand curve of an oligopolist is based on the assumption that

• A)competitors will follow a price cut but ignore a price increase.
• B)competitors will match both price cuts and price increases.
• C)competitors will ignore a price cut but follow a price increase.
• D)there is no product differentiation.

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Definitions:

Prospect's Objection

The concerns or hesitations expressed by potential customers or clients during the sales process, which need to be addressed by the seller to successfully close a sale.

Showing a Diagram

The act of presenting a graphical representation of information to visualize concepts, data, or processes.

Salesperson

An individual who sells products or services directly to customers, working to ensure customer satisfaction and achieve sales targets.

Explain

To make (an idea, situation, or problem) clear to someone by describing it in more detail or revealing relevant facts.