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Kinked-Demand Theory
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Kinked-Demand Theory
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14. Oligopoly / Kinked-Demand Theory / Problem 3
Problem 3
How does the number of firms in an oligopoly influence the kinked-demand curve?
A
More firms lead to a perfectly elastic demand curve.
B
Fewer firms result in a less pronounced kink due to decreased competition.
C
More firms lead to a more pronounced kink due to increased interdependence.
D
The number of firms does not affect the kinked-demand curve.
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