If a Kink Exists in an Oligopolist's Demand Curve

question 21

Multiple Choice

If a kink exists in an oligopolist's demand curve:

• A)products are differentiated
• B)an abrupt change in price elasticity occurs
• C)the business will ignore price cuts by rivals, but will match their price increases
• D)there is a gap in marginal costs
• E)products in the market are standardized

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Definitions:

Self-actualization

The act of achieving one's full potential and talents, regarded as a fundamental desire or requirement within every person.

Facial-Feedback Hypothesis

The idea that one's facial expressions can directly affect their emotional experiences.

Cannon-Bard Theory

A theory of emotion that proposes that physiological arousal and emotional experience occur simultaneously and independently in response to a stimulus.

Subcortical Brain Activity

Neural operations occurring in the regions of the brain beneath the cerebral cortex, involved in functions such as emotion, memory, and motor control.