Which statement is false?A) The kinked demand curve represents oligopoly with collusion.B) The kinked demand curve is associated with sticky prices.C) Administered prices occur more frequently under oligopoly than under other forms of competition.D) None of these statements are false.

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Austin Hymel · Accepted Answer

Final Answer : A, Explanation :  The kinked demand curve represents oligopoly without collusion. The curve assumes that if one firm raises its prices, other firms will not follow suit, leading to a significant loss in market share for the firm that raised prices. Therefore, firms have an incentive to keep prices stable, leading to a kink in the demand curve.

Which statement is false?

A) The kinked demand curve represents oligopoly with collusion.
B) The kinked demand curve is associated with sticky prices.
C) Administered prices occur more frequently under oligopoly than under other forms of competition.
D) None of these statements are false.

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