ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
32
The kinked-demand curve model of oligopoly: Multiple Choice suggests a firm's rivals will ignore a price cut but match a price increase. assumes a firm's rivals will ignore any price change it may initiate. assumes a firm's rivals will match any price change it may initiate. suggests small changes in unit costs will have no effect on equilibrium price and output.
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Transcribed Image Text:The kinked-demand curve model of oligopoly: Multiple Choice suggests a firm's rivals will ignore a price cut but match a price increase. assumes a firm's rivals will ignore any price change it may initiate. assumes a firm's rivals will match any price change it may initiate. suggests small changes in unit costs will have no effect on equilibrium price and output.
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