Suppose an oligopolistic firm assumes that its rivals will ignore a price increase but match a price cut. In this case, the firm perceives its demand curve to be:
A) kinked, being steeper above the going price than below.
B) kinked, being steeper below the going price than above.
C) linear, being less elastic at lower prices.
D) linear, being more elastic at higher prices.
Correct Answer:
Verified
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