4455EconomicsMedium
The reason for the kinked demand curve is that?
AThe oligopolist believes that competitors will match price increase but not output increase
BThe oligopolist believers that competitors will match price cuts but not price rises
CThe oligopolist believes that competitors will match output increase but not output reduction
DThe oligopolist believes that competitors will match price increase but not output reduction
Correct answer
B. The oligopolist believers that competitors will match price cuts but not price rises
Explanation
The correct answer is The oligopolist believers that competitors will match price cuts but not price rises.