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All of the Following Statements Are Consistent with the Kinked

Question 38

Multiple Choice

All of the following statements are consistent with the kinked demand curve theory except


A) the theory depicts cutthroat competition.
B) according to the theory,firms are reluctant to raise or lower price.
C) according to the theory,if a firm raised its prices its competitors also would raise their prices.
D) the theory is associated with "sticky prices."

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