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Economics
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Economics
A major weakness of the kinked demand curve model of oligopoly is that ?
A
it assumes that firms believe that their rivals will not respond to any price change they initiate
Option A
it fails to explain how a firm arrived at its price and output decision initially
Correct answer
C
The model cannot be tested empirically.
Option C
D
Real-world pricing strategies are more simple than those assumed in this model
Option D
Correct answer: B
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