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The Kinked Demand Curve Model Assumes That If a Firm

Question 162

Multiple Choice

The kinked demand curve model assumes that if a firm raises its price, then its rivals will _____ the price increase, but if a firm lowers its price, its rivals will _____ the price decrease.


A) ignore; ignore
B) match; match
C) ignore; match
D) match; ignore

Correct Answer:

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