There are four types of market structures: perfect competition, monopolistic competition, oligopoly and monopoly.

The question is related to which category would Apple would fall under and the characteristics of the relevant market structure to Apple.

So my thinking was that it Apple Inc. maintains oligopoly market structure in the competition of smart phone brands announcements,but Apple Inc. is known as monopolistic competition in the branded computers. Monopolistic competition in which many sellers are producing highly differentiated products.

THE QUESTION

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With the aid of a diagram, explain the economic theory underlying a kinked demand curve. Justify whether it would be applicable in this case. (13)