kinked-demand model

Related BrainMass Solutions

• Oligopoly: Underlying assumptions of the kinked-demand curve

  How does the kinked-demand curve explain price rigidity in oligopoly? What are the shortcomings of the kinked-demand model?

• Earning profit in a monopolistically competitive market

  All of the above In the Kinked Demand curve model, the demand curve is ________ for prices increases and _______ for price decreases: Select one: a. unit elastic; relatively elastic b. relatively elastic; relatively inelastic c. relatively

• Oligopoly Model

  -----------update1----------- kinked demand model deals with a rapid fluctuations in prices (when demand curve is kinked, rather than smooth). This model could be applied to oligopoly or monopolistic competition.

• Oligopoly: Price cut and kinked demand curve

  Thanks In an oligopoly industry, there is a mutually interdependent pricing dynamics which is explained by the Kinked Demand Curve Model.

• Oligopoly models & game theory

  What oligopoly model (s) might offer an explanation for this behavior? Answer: Kinked demand curve and Price Leadership are two models which explain this behavior. Hence answer is a and b Solves two MCQs on Oligopoly model, game theory

• How Oligopoliies limit competition from from rivals.

  One way to model oligopolists is with the kinked demand curve model. This is the most prominent approach in principles texts. Within the kinked demand curve model if one firm lowers its price others will as well.

• kinked-demand model

  180734 Diagram the kinked-demand model for an oligopoly firm including the demand, MR and MC curves as well as the equilibrium price and output. Explain why the prices often tend to be sticky in oligopoly markets even when costs change.

• Oligopoly considerations

  For example the kinked demand curve is often used to describe oligopolies.

• Maximizing Profit: The Oligopolist Kinked Demand Curve Model

  224755 Profit-maximizing output and price under oligopoly conditions (the kinked demand curve model). Need Help: Assume the attached graph depicts a firm that tries to maximize profits or minimize losses.