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The kinked-demand curve model of oligopoly is useful in explaining Multiple Choice why oligopolistic prices might change infrequently. the process by which oligopolists merge with one another. why oligopolistic prices and outputs are extremely sensitive to changes in marginal cost.

User Wan Chap
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Answer:

why oligopolistic prices might change infrequently

Step-by-step explanation:

A kinked demand curve model states that participants in an oligopoly market will be hesitant to increase their price if another competitor increases their price, but will decrease their price in case another competitor decreases their price. I.e. a price increase does not generate a lot of reactions by the suppliers, but a price decrease will be matched by all the other suppliers.

User Baron Legendre
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