If an Oligopolist Faces a Kinked Demand Curve, Then the Price

question 173

Multiple Choice

If an oligopolist faces a kinked demand curve, then the price

• A) will increase whenever demand decreases.
• B) will decrease when competition is reduced.
• C) will increase if more firms enter the market.
• D) is likely to remain stable even if there is a small change in the costs of production.

---

Definitions:

Human Resources

The department within an organization that is responsible for managing employee-related processes including recruitment, training, and benefits.

Right Mix of Skills

The ideal combination of abilities and competencies required to perform a job effectively.

Value Creation Tasks

Activities or initiatives undertaken by an organization aimed at increasing the value it delivers to its customers or stakeholders.

Local Preferences

Local preferences refer to the particular tastes, habits, or choices predominant among consumers in a specific geographic region, affecting the demand for certain products or services.