The Kinked-Demand Curve Model of Oligopoly Is Useful in Explaining

question 26

Multiple Choice

The kinked-demand curve model of oligopoly is useful in explaining

• A)the way that collusion works.
• B)why oligopolistic prices and outputs are extremely sensitive to changes in marginal cost.
• C)why oligopolistic prices might change infrequently.
• D)the process by which oligopolists merge with one another.

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Definitions:

Accommodation

In psychology, a cognitive process of adjusting one's schema to incorporate new information; in everyday usage, refers to making physical or social adjustments or adaptations.

Assimilation

The process by which a person or a group becomes part of another culture.

Existing Theories

Previously developed and accepted explanations for phenomena or observations within a particular domain of knowledge.

Toilet Training

The process of teaching a young child to use the toilet for urination and defecation, also known as potty training.