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Commerce · Q884

Economics

Graduate and Post Graduate · Commerce · question 884

Q884

In the kinked demand model, the demand curve for the firm's products is drawn on the assumption that

A.
All rivals charge the same price charged by the oligopolist
Answer
B.
All rivals charge a price independent of the price charged by the oligopolist
C.
All rivals follow the oligopolist up to a certain price
D.
All oligopolists charge the price as independent sellers

Answer: Option A

Solution

Answer: Option A
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