Q
The reason for the kinked demand curve is that ?
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A
A. The oligopolist believes that competitors will match output increase but not output reduction
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B
B. The oligopolist believes that competitors will match price increase but not output reduction
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C
C. The oligopolist believers that competitors will match price cuts but not price rises
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D
D. The oligopolist believes that competitors will match price increase but not output increase
Correct Answer:
C. C. The oligopolist believers that competitors will match price cuts but not price rises
