In a kinked demand market, whenever one firm decides to lower its price,
a. other firms will automatically follow.
b. none of the other firms will follow.
c. one half of the firms follow and one half of the firms don't follow the price cut.
d. other firms all decide to exit the industry
e. all of the other firms raise their prices.
a
Economics
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A) exceed; more B) exceed; fewer C) are less than; fewer D) are less than; more
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If the selling price falls and input costs are fixed, profit margins will increase
a. True b. False Indicate whether the statement is true or false
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