The Kinked-Demand Curve Model Shows That Oligopolistic Firms Tend to Change

question 5

True/False

The kinked-demand curve model shows that oligopolistic firms tend to change their prices frequently.

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Definitions:

Net Price

The actual price paid for a product or service after subtracting any discounts, rebates, or allowances.

Discount

A reduction applied to a regular price or rate, often used as an incentive for purchasing goods or services.

Mark-up

The amount added to the cost price of goods to cover overhead and profit; the difference between the cost and selling price.

Retail Prices

The price at which goods and services are sold to the end consumer, inclusive of markup and VAT.