The Kinked-Demand Curve Model of Oligopoly

question 91

Multiple Choice

The kinked-demand curve model of oligopoly

• A) assumes a firm's rivals will ignore a price cut but match a price increase.
• B) embodies the possibility that changes in unit costs will have no effect on equilibrium price and output.
• C) assumes a firm's rivals will match any price change it may initiate.
• D) assumes a firm's rivals will ignore any price change it may initiate.

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Definitions:

Financial Measures

Quantitative indicators used to assess the financial health, performance, and stability of a business or project.

Customer Measures

These are metrics used by companies to assess satisfaction, loyalty, and experience from the customer's perspective.

Learning And Growth

A perspective within the Balanced Scorecard approach focusing on employee training and development, for the purpose of improving internal processes and innovation.

Profit Center

A division or segment of a company that is responsible for generating its own revenue and profit, with its financial performance being identifiable separately from other business activities.