According to the kinked-demand model of oligopoly, if two of three firms ignore a price decrease by the third firm . Multiple choice question. the third firm will lose sales because the other two firms' demand curves become more inelastic the third firm will gain sales because the other two firms' demand curves become more elastic the third firm will gain sales because the other two firms' demand curves become more inelastic, relative to the third firm's demand curve the third firm will lose sales because the other two firms' demand curves become more elastic
Solved
Show answers
More tips
- F Food and Cooking 10 Reasons Why You Should Avoid Giving Re-Gifts: An Informative Guide...
- F Family and Home How to Sew Curtain Tapes: Best Tips from Professionals...
- A Animals and plants How to Grow Lime from a Seed: Simple Tips and Interesting Facts...
- C Computers and Internet How to Create a Folder on Your iPhone?...
- G Goods and services How to sew a ribbon: Tips for beginners...
- F Food and Cooking How to Make Mayonnaise at Home? Secrets of Homemade Mayonnaise...
- C Computers and Internet Which Phone is Best for Internet Surfing?...
- F Food and Cooking Everything You Need to Know About Pasta...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
Answers on questions: Business
- B Business The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 9% bonds with a face amount of $670,000...
- B Business Hancock Company has 900,000 shares authorized and 350,000 shares issued and outstanding of its $2 par value common stock. The stock is currently selling for $20...
- B Business Do-well bonds have a face value of 1000 and are currently quoted at 86.725. The bonds have coupon rate of 6.5 percent. What is the current yield on these bonds?...
- B Business Exercise 16-23 On June 1, 2015, Marigold Company and Swifty Company merged to form Nash Inc. A total of 769,000 shares were issued to complete the merger. The new...
- B Business Last year Alan charged $2,773,333 Depreciation on the Income Statement of Andrews. If early this year Alan purchased a new depreciable asset, the effect on Andrews...
- B Business Top managers of are alarmed by their operating losses. They are considering dropping the laminate flooring product line. Company accountants have prepared the following...
- B Business Fatima recently started her own tutoring firm to offer study help for high school students. To help finance her new business, which has a very limited track record,...
- B Business The total assets and liabilities of Robot Company at January 1 and December 31, 2020 are presented below. January 1 December 31Assets $76,000 $112,000Liabilities...
- H History What can you infer was the purpose for this photograph being taken? O to show that industrial workers deserved higher wages to gain Avernment support for the eight-hour...
- H History Which of these statements is accurate about the Declaration of Independence he OA. The Declaration of Independence never worked as intended. OB. The Declaration...
Ответ:
the third firm will lose sales because the other two firms' demand curves become more inelastic
Explanation:
In the case when the two out of the three firms would ignore the price reduction made by the third firm so in this case the third firm could lose the sales as the demand curve of other two firms become more inelastic
Therefore as per the given situation, the option a is correct
hence, the same is to be considered
Ответ:
D. A large number of people are unemployed and have decreased spending power.