Question

According to the kinked demand curve model, if an oligopolistic firm lowers its price, it should expect to see its total revenue:________

A. Cannot be determined without more information
B. Stay the same
C. Decrease
D. Increase

Answer 1

C. Decrease

Step-by-step explanation:

In an Oligopolistic market, a reduction in price, when competing firms follows through by reducing their own price; will lead to a decrease in total revenue.