KEY QUESTION What assumptions about a rivals response to price changes underlie the kinked-demand curve for oligopolists?

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KEY QUESTION What assumptions about a rival’s response to price changes underlie the kinked-demand curve for oligopolists?

Why is there a gap in the oligopolist’s marginalrevenue curve? How does the kinked-demand curve explain price rigidity in oligopoly? What are the shortcomings of the kinked-demand model?

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Economics

ISBN: 9780073336947

17th Edition

Authors: Campbell McConnell , Stanley Brue

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Question Posted: Sep 26, 2024 09:00 AM

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KEY QUESTION What assumptions about a rivals response to price changes underlie the kinked-demand curve for oligopolists?

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Economics

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