The kinked demand theory attempts to explain why an oligopolistic firm:
a. has relatively large advertising expenditures.
b. fails to invest in research and development (R and D).
c. infrequently changes its price.
d. engages in excessive brand proliferation.
c
Economics
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Which of the following macroeconomic variables is procyclical and leads the business cycle?
A) Business fixed investment B) Residential investment C) Nominal interest rates D) Unemployment
Economics
Before entering, fixed cost associated with the industry in question are sunk costs for
A) the incumbent firm. B) the outside firm. C) both firms. D) neither firm.
Economics