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