Which Statement Concerning the Kinked Demand Curve Model of Oligopoly

question 234

Multiple Choice

Which statement concerning the kinked demand curve model of oligopoly is false?

• A)It addresses the question of price "stickiness."
• B)It assumes when one oligopolist raises the price, all others will follow.
• C)The portion of the demand curve above the "kink" is more elastic than the portion below.
• D)The firm's marginal costs can sometimes shift without changing the profit-maximizing price and output.

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Definitions:

Contingency Contract

A behavioral strategy involving a formal agreement between parties to reinforce desired behaviors or reduce undesired ones.

Weekly Goals

Objective or targets set to be achieved within the span of a week, commonly used in personal and professional planning to organize and prioritize tasks.

Token Economy

A behavioral modification technique that involves giving tokens as rewards for desired behaviors, which can later be exchanged for specific privileges or items.

Flooding

A psychological treatment method that exposes the patient to their feared objects or situations extensively and intensively.