In the Kinked Demand Curve Model of Oligopoly It Is

question 2

Multiple Choice

In the Kinked Demand Curve model of oligopoly it is assumed that:

• A) An increase in price will be followed by other firms.
• B) A decrease in price will not be followed by other firms.
• C) An increase in price is not followed by other firms.
• D) Price competition is common in the industry.

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Definitions:

Plant Assignments

The allocation of production tasks or operations to specific manufacturing plants or facilities based on factors like capacity, specialization, and location.

Regional Centers

Designated areas that focus on the development and economic growth within a specific region, often fostering business and investment opportunities.

Facility Decisions

Choices related to the operation, location, and physical assets of a business that directly impact its capacity and capability to produce goods or services.

Long-term Consequences

Outputs or effects that manifest or are felt over an extended period, often as a result of earlier actions or decisions.