Dollars ● MR g Output hj D MC ATC The diagram above shows kinked demand and marginal revenue curves for a non-collusive oligopolist. What basic assumption is used to create this kinked structure? the firm ignores actions of rival firms O rivals will match both a price increase and a price decrease. O rivals will match a price increase but ignore a price decrease. rivals will ignore a price increase but match a price decrease.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Dollars
B
P
603
MR
g
Output
hj
D
MC
ATC
The diagram above shows kinked demand and marginal revenue
curves for a non-collusive oligopolist. What basic assumption is
used to create this kinked structure?
O the firm ignores actions of rival firms
O rivals will match both a price increase and a price decrease.
O rivals will match a price increase but ignore a price decrease.
rivals will ignore a price increase but match a price decrease.
Transcribed Image Text:Dollars B P 603 MR g Output hj D MC ATC The diagram above shows kinked demand and marginal revenue curves for a non-collusive oligopolist. What basic assumption is used to create this kinked structure? O the firm ignores actions of rival firms O rivals will match both a price increase and a price decrease. O rivals will match a price increase but ignore a price decrease. rivals will ignore a price increase but match a price decrease.
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