The Kinked Demand Theory Attempts to Explain Why an Oligopolistic

question 1

Multiple Choice

The kinked demand theory attempts to explain why an oligopolistic firm:

• A) has relatively large advertising expenditures.
• B) fails to invest in research and development.
• C) infrequently changes its price.
• D) engages in excessive brand proliferation.

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Definitions:

Resource Partitioning

The reduction of competition for environmental resources such as food that occurs among coexisting species as a result of each species’ niche differing from the others in one or more ways.

Intraspecific Competition

Competition among members of the same species for resources such as food, space, and mates.

Relocating Nesting

The process by which birds or other animals move their nesting site from one location to another, often for safety or environmental reasons.

Facilitation

In ecology, a situation in which one species has a positive effect on other species in the community, for example, by enhancing the local environment.