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Question
which of the following is a model used to examine oligopolistic pricing? the kinked - demand curve model the supply curve model the herfindahl model the advertising model
The kinked - demand curve model is used to analyze oligopolistic pricing. It assumes that firms in an oligopoly face a demand curve that is kinked at the current price level, due to different elasticities of demand for price increases and decreases. The supply curve model is for general supply - demand analysis not specific to oligopoly pricing. The Herfindahl model measures market concentration. The advertising model focuses on advertising effects, not pricing in oligopoly directly.
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The kinked - demand curve model