Answer:
competitors will follow a price cut but ignore a price increase.
Explanation:
The Kinked demand curve model of oligoplolist is based on the assumption that competitors will follow price cut but ignore a price increase because of interdependence among firms price is rigid in oligopoly market. When a firm raises the price of its products none of its competitors will follow the same whereas in case firm reduces its price its competitors will follow the same.
Thus, it is prudent behaviour on the part of a firm not to change in the prices of its products frequently. It is because this reaction of rival firms, the demand curve face by an oligopoly firm has a kink. The kink is formed at prevailing price level.
The portion of demand curve above the kink is more elastic implying, when oligopolist increase the price of its product none of its competitors will follow it with expectation to capture the market demand created due rise in prices by first firm.
The lower portion of the kink is relatively inelastic showing that in case an oligopolist reduces its price its rival firms will also reduce their prices with a view to not to lose their market demand. Thus, it will not beneficial for the oligopolist in either of the situations. Therefore, it will stick to the prevailing price.
That statement is false.
WHAT ARE "OPERATING ASSETS"?
Operating assets are assets acquired for use of the ongoing operations of a business.
OPERATING ASSETS INCLUDE:
Inventory, accounts receivable, & fixed assets.
WHY IS IT FALSE?
This statement would've been correct up until this point: "but not any depreciable fixed assets."
Answer:
A sub-agent
Explanation:
Since Mike who was hired by Bob is licensed to practice law, which would help him file a lawsuit against those who don't pay the outstanding balances owed, he is a sub-agent.
A sub-agent in legal law is someone who performs a fiduciary duty and incurs the same liabilities in regard to his immediate employers, like the sole principal.
