Ask Question
BusinessBusiness
12 October, 07:49

Fat's meats is in an oligopoly market. according to the kinked demand curve model, if it raises its prices to increase profit, its competitors will:

+3
Answers (1)
  1. 12 October, 11:06
    0
    They will most likely not raise their prices.

    If you look at the kinked demand curve, deviating from the market price will lead to losses for the firm. Increasing the price will lead to a loss in sales as price rigidity is a characteristic of an oligopolistic market, whereas if the firm lowers prices, this will invoke a price war and everyone will end up fighting for lower prices and customers.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Fat's meats is in an oligopoly market. according to the kinked demand curve model, if it raises its prices to increase profit, its ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
All of the following components are commonly found in a rental housing agreements except A) whether the renter can have pets in the house B) how much the renter will pay C) what type of renters insurance the renters must buy D) which repair types
Answers (2)
Why do governments use tax money to supply public goods and services, instead of selling them to those people who use them?
Answers (1)
When projecting the balance sheet, what happens when the initial balance sheet yields estimated total assets greater than the sum of total liabilities and equity? a. The company will need additional financing from external sources. b.
Answers (1)
Every year, Johnson Technologies hosts a banquet during which employees are given various awards, such as "safest driver" and "branch employee of the year." What is Johnson Technologies most likely trying to accomplish with this activity? A.
Answers (1)
During the year, assets increased by $20,000 and stockholders' equity increased by $15,000. What was the increase in liabilities?
Answers (1)
New Questions in Business
Replace present refrigerators with similar refrigerators at a cost of $20 x 106. Option 2. Replace present refrigerators with lake-source cooling at a cost of $50 x 106. However, the lake-source cooling would save 1.
Answers (1)
For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $90,000; shipping expenses total 2% of sales;
Answers (1)
Steven is going to purchase two stocks to form the initial holdings in his portfolio. Iron stock has an expected return of 25 percent, while Copper stock has an expected return of 19 percent.
Answers (1)
Continuous quality improvement depends heavily upon: Select one: a. hard work b. monitoring special causes of variance c. use of checklists d. employment of the PDCA cycle
Answers (1)
The difficulty in cost-benefit analysis is that the benefits are usually evident and easily measurable, while the costs are not always evident or measurable. A) True B) False
Answers (1)
Home » Business » Fat's meats is in an oligopoly market. according to the kinked demand curve model, if it raises its prices to increase profit, its competitors will:
Sign Up Forgot Password?