Which Statement Concerning the Kinked Demand Curve Model of Oligopoly

question 84

Multiple Choice

Which statement concerning the kinked demand curve model of oligopoly is false?

• A) It addresses the question of price "stickiness."
• B) It assumes when one oligopolist raises the price, all others will follow.
• C) The portion of the demand curve above the "kink" is more elastic than the portion below.
• D) The firm's marginal costs can sometimes shift without changing the profit-maximizing price and output.

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Definitions:

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Tardive Dyskinesia

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Neurological Disorder

A disorder affecting the nervous system, often resulting in various dysfunctions related to movement, communication, or cognitive abilities.