The graph below shows the Chamberlin model. The dd curve is based on the assumption that
A)firms all follow each other when any one of them changes price.
B)market demand is more elastic than the demand for any one firm.
C)firms can gain market share by lowering their price below the price of the competition.
D)firms will follow any price increases of their competitors.

Question

The graph below shows the Chamberlin model. The dd curve is based on the assumption that 
A)firms all follow each other when any one of them changes price. 
B)market demand is more elastic than the demand for any one firm. 
C)firms can gain market share by lowering their price below the price of the competition. 
D)firms will follow any price increases of their competitors.

Quizplus · Accepted Answer

The Answer of The graph below shows the Chamberlin model. The dd curve is based on the assumption that 
A)firms all follow each other when any one of them changes price. 
B)market demand is more elastic than the demand for any one firm. 
C)firms can gain market share by lowering their price below the price of the competition. 
D)firms will follow any price increases of their competitors.

The Graph Below Shows the Chamberlin Model