One of the Implications of the Kinked Demand Curve Model

question 89

True/False

One of the implications of the kinked demand curve model is that even if a firm's costs change by a measurable amount,market price is unlikely to change.This helps explain the price rigidity observed in many oligopolistic markets.

---

Definitions:

Trial Balance

A bookkeeping report that lists the balances of all ledgers in two columns, debit and credit, ensuring that the total debits equal total credits, which is crucial for the accuracy of financial statements.

Supplies

Items used in the operation of a business but not directly associated with the production of goods or services, such as office materials or cleaning supplies.

Adjusted Trial Balance

A list of all the accounts of a company, showing their balances after adjustments, used to prepare financial statements.

Balance Sheet

A financial statement that presents a company's financial position at a given point in time, showing assets, liabilities, and shareholders' equity.