All,except One,of the Following Statements About the Kinked Demand Curve

question 111

Multiple Choice

All,except one,of the following statements about the kinked demand curve theory of oligopoly are correct.Which is the exception?

• A)It explains why the prices charged by rival firms are often similar.
• B)It explains why rival firms that charge similar prices may not be in collusion.
• C)It explains why the prices charged by rival firms sometimes go for months,or even years,without changing.
• D)It explains,particularly well,how the prevailing price in the industry first got established.

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The long-term rise in Earth's average temperature, primarily due to human activities, such as burning fossil fuels.

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