Kinked demand curve in oligopoly market explains:
(a) Price and output determination
(b) Existence of very few firms in the market
(c) Price rigidity
(d) Price leadership
Answers
Answered by
0
mark me as brainliest answer
Kinked-Demand Theory of Oligopoly. ... The oligopolist maximizes profits by equating marginal revenue with marginal cost, which results in an equilibrium output of Q units and an equilibrium price of P. The oligopolist faces a kinked‐demand curve because of competition from other oligopolists in the market.
Similar questions