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The Kinked Demand Curve Model of Oligopoly Explains Why Oligopoly

Question 139

Multiple Choice

The kinked demand curve model of oligopoly explains why oligopoly


A) firms cannot maximize their profits
B) firms do not lower prices to increase market share
C) firms tend to increase price
D) firms tend to decrease price to their minimum ATC
E) tends to generate a higher economic profit than in any other market structure

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