Multiple Choice
All the following explain price stickiness except
A) firms choose not to adjust prices until they can assess if changes in sales are temporary or permanent.
B) the more firms produce, the lower the average cost of production. Therefore, firms are willing to not raise prices as long as they can sell more.
C) firms may be concerned that consumers may be angered by price increases.
D) firms may be concerned that their rivals may not match their price increases.
Correct Answer:

Verified
Correct Answer:
Verified
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