In the kinked Demand Curve theory it is assumed that?

1588EconomicsMedium

AFirms collude to fix the price

BAn increase in price by the firm is not followed by others

CAn increase in price by the firm is followed by others

DA decrease in price by the firm is followed by others

Correct answer

B. An increase in price by the firm is not followed by others

Explanation

The correct answer is An increase in price by the firm is not followed by others.

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