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According to the kinked-demand model of oligopoly, if two of three firms ignore a price decrease by the third firm ______. Multiple choice question. the third firm will lose sales because the other two firms' demand curves become more inelastic the third firm will gain sales because the other two firms' demand curves become more elastic the third firm will gain sales because the other two firms' demand curves become more inelastic, relative to the third firm's demand curve the third firm will lose sales because the other two firms' demand curves become more elastic

Respuesta :

Answer:

the third firm will lose sales because the other two firms' demand curves become more inelastic

Explanation:

In the case when the two out of the three firms would ignore the price reduction made by the third firm so in this case the third firm could lose the sales as the demand curve of other two firms become more inelastic

Therefore as per the given situation, the option a is correct

hence, the same is to be considered

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