Both Game Theory and the Kinked Demand Model Assume That

question 60

Multiple Choice

Both game theory and the kinked demand model assume that

• A) each firm in the market responds to the initial price change.
• B) economies of scale exist.
• C) market participants are irrational and are unaware that lowering price stimulates sales.
• D) diminishing marginal returns do not appear.

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Canadian Human Rights Act

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