When customers choose between products based on personal preference rather than on an objective measurement, this is called

Mixed Differentiation

Vertical Differentiation

Horizontal Differentiation

The basic consumer preference theory

Assessment

Question $11$ of $90$

$0145$ HR MIN SEC

Looking at a Kinked Demand situation, why would an Oligopoly be reluctant to decrease the price of their product on their own?

They would be then exposed to an elastic demand for their product and the price increase would lead to a lower total revenue.

They would be then exposed to an inelastic demand for their product and the price decrease would lead to a lower total revenue.

Oligopolies are not reluctant to decreasing prices on their own

They would be then exposed to an elastic demand for their product and the price increase would lead to a higher total revenue.