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Author Question: In a kinked demand market, whenever one firm decides to lower its price, a. other firms will ... (Read 34 times)

darbym82

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on: Jul 1, 2018
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.

Question 2

What's the dominant strategy for each firm?
 a. Charge a low price
  b. Charge a high price
  c. Firm A charge a low price and firm B charge a high price
  d. Firm A charge a high price and firm B charge a low price


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Jsherida

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Reply #1 on: Jul 1, 2018
Answer to Question 1

a

Answer to Question 2

a


darbym82

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

adammoses97

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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