16 When does a kinked demand curve occur?When one firm in a duopoly cuts prices and forces the exit of the other firmBOWhen competing oligopoly firms agree to increase prices at the same time and rateCOWhen competing oligopoly firms commit to match price cuts but not price increasesDOWhen a natural monopoly raises its prices and provides an opportunity for market entry

In the oligopoly market, there are few firms which dominate the market. It is a highly concentrated…

16 When does a kinked demand curve occur? A When one firm in a duopoly cuts prices and forces the exit of the other firm B When competing oligopoly firms agree to increase prices at the same time and rate When competing oligopoly firms commit to match price cuts but not price increases DO When a natural monopoly raises its prices and provides an opportunity for market entry

16 When does a kinked demand curve occur? A When one firm in a duopoly cuts prices and forces the exit of the other firm B When competing oligopoly firms agree to increase prices at the same time and rate When competing oligopoly firms commit to match price cuts but not price increases DO When a natural monopoly raises its prices and provides an opportunity for market entry

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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16 When does a kinked demand curve occur?
When one firm in a duopoly cuts prices and forces the exit of the other firm
BO
When competing oligopoly firms agree to increase prices at the same time and rate
CO
When competing oligopoly firms commit to match price cuts but not price increases
DO
When a natural monopoly raises its prices and provides an opportunity for market entry

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Full solution explain .
6 Company X, Company Y, and Company Z have formed an oligopoly. Company X raises its prices, but Company Y and Company Z do not. Which of the following will likely occur? A Company Y and Company Z will form a duopoly. BO The sales of Company X will decline slightly. CO The sales of Company X will decline sharply. DO Company X will have significant, sustained profit increases.
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