SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Economics A Level (DONEEEEEEE)

» Start this Course
(Practice similar questions for free)
Question:

What is the Outcome from the Kinked Demand Curve -Is it seen in all Oligopolistic Markets?

Author: eric_galvao



Answer:

-Result of the Kinked Demand Curve shows that Firms have no Interest to Change their Prices. Both will end up being a Loss for them -This isn’t seen in All Markets though. The Assumptions may be not always Best Suited for the Oligopoly, and this, its hard to Predict the Behaviour -Furthermore, Price Drops and Increases can be due to Non-Price Factors (Quality)


0 / 5  (0 ratings)

1 answer(s) in total