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In the context of oligopoly the kinked demand curve hypothesis is...

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In the context of oligopoly, the kinked demand curve hypothesis is designed to explain

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Correct Answer: Option B
In the context of oligopoly, the kinked demand curve hypothesis is designed to explain Price rigidity. The curve is more elastic above the kink and less elastic below it. This means that the response to a price increase is less than the response to a price decrease.
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