One of the theories that explains oligopoly behavior is the kinked demand curve theory. The kinked demand curve
A) applies when competitors match price decreases but not price increases
B) could apply to market demand in any market structure
C) applies when competitors match price increases but not price decreases
D) applies to the price leadership model
E) applies when competitors act independently

Question

Quizplus · Accepted Answer

The Answer of One of the theories that explains oligopoly behavior is the kinked demand curve theory. The kinked demand curve
A) applies when competitors match price decreases but not price increases
B) could apply to market demand in any market structure
C) applies when competitors match price increases but not price decreases
D) applies to the price leadership model
E) applies when competitors act independently

One of the Theories That Explains Oligopoly Behavior Is the Kinked