Economics 9708 · AS & A Level · 7.6

7.6 — practice question

Which characteristic of an oligopoly can be explained by the kinked demand curve model?

  • Acollusion between firms in the determination of the industry price
  • Bprice leadership by one firm in the industry
  • Cthe ability of firms to earn abnormal profits in the long run
  • Dthe reluctance of firms to alter prices

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