Which of the Following Statements Best Describes the Thinking of a Single

question 85

Multiple Choice

Which of the following statements best describes the thinking of a single firm in the kinked-demand curve variant of oligopoly theory?

• A)If we raise our price our rivals will follow us,and if we lower our price our rivals will simply do nothing.
• B)If we lower price our rivals will follow us,and if we raise our price our rivals will simply do nothing.
• C)If we raise our output our rivals will follow us,and if we lower our output our rivals will simply do nothing.
• D)If we lower our output our rivals will follow us,and if we raise our output our rivals will simply do nothing.

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Definitions:

Orderly Transfer

A well-organized and systematic process of passing authority, responsibility, or information from one entity to another.

Goods And Services

Products and activities provided in the marketplace that satisfy consumer needs and wants.

Seller To Buyer

The transfer of products, services, or assets from the seller to the buyer in a market transaction.

Ownership Utility

Orderly transfer of goods and services from the seller to the buyer; also called possession utility.