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Faced with a Kinked Demand Curve,what Action Will an Oligopolist

Question 75

Multiple Choice

Faced with a kinked demand curve,what action will an oligopolist take if the costs of production increase?


A) Increase the price
B) Decrease the price,but only if the demand is elastic.
C) Decrease the price,but only if the demand is inelastic.
D) Decrease the price but only if it is a big increase in costs.
E) Nothing,unless it is a very big increase in costs.

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