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The Demand Curve Facing an Oligopoly Firm Is Kinked Because

Question 88

Multiple Choice

The demand curve facing an oligopoly firm is kinked because


A) Its competitors will match only price hikes.
B) It is most likely that rivals will match price cuts but not price increases.
C) The demand curve that is most inelastic is the most probable situation facing the company.
D) It is most likely that competitors will match price hikes as they practice price leadership.

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