Which of the following is an oligopoly model where firms assume that their rivals will match price cuts but not price increases?
A) The kinked demand curve model
B) The Cournot model
C) The Bertrand model
D) The price leadership model

Question

Quizplus · Accepted Answer

The kinked demand curve model is characterized by firms assuming that their rivals will match price cuts to avoid losing market share but will not match price increases, leading to a kinked demand curve for the firm. This assumption results in price rigidity within the market.

Which of the Following Is an Oligopoly Model Where Firms