A Weakness of the Kinked Demand Curve Model of Oligopoly

question 181

Multiple Choice

A weakness of the kinked demand curve model of oligopoly is

• A)that marginal costs are frequently changing.
• B)it assumes that firms are reluctant to change prices.
• C)the marginal revenue curve is kinked at the market price.
• D)it does not explain how prices are determined.

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