A. it assumes that firms believe that their rivals will not respond to any price change they initiate
B. it fails to explain how a firm arrived at its price and output decision initially
C. The model cannot be tested empirically.
D. Real-world pricing strategies are more simple than those assumed in this model
Correct Answer: it fails to explain how a firm arrived at its price and output decision initially ✔
Last Updated: June 18, 2019