Forms of commitments include

What is adverse selection? Give an example and explain why it is a problem

What will be an ideal response?

The theory of the kinked demand curve is that

a. although the firm sells a differentiated product, too many competitors exist to make it worthwhile speculating on responses to the firm's behavior. b. freedom of entry will reduce profits to zero. c. a firm's competitors will follow it in a price decrease but not follow it in a price increase. d. firms are all seeking the position of joint profit maximization.