The kinked demand curve model is based on the assumption that each firm:
A) considers its rival's output to be fixed.
B) considers its rival's price to be fixed.
C) believes rivals will match all price changes.
D) believes rivals will never match price changes.
E) none of the above

Question

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The Answer of The kinked demand curve model is based on the assumption that each firm:
A) considers its rival's output to be fixed.
B) considers its rival's price to be fixed.
C) believes rivals will match all price changes.
D) believes rivals will never match price changes.
E) none of the above

The Kinked Demand Curve Model Is Based on the Assumption