Model of an oligopoly is based on the assumption

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The kinked-demand (Sweezy) model of an oligopoly is based on the assumption that:

a. competitors will match a price cut but ignore a price increase.

b. competitors will match both price cuts and price increases.

c. there is no product differentiation.

d. competitors will match a price increase but ignore a price cut. why?

Reference no: EM13984096

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