Log in
Economics
3
answers
0
watching
942
views

(a) What alleged pricing behavior of oligopolists does the kinked demand curve seek to explain?

(b) How does the model seek to accomplish this?

Watch
3
answers
0
watching
942
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Already have an account? Log in
Share
Joshua Stredder
Joshua StredderLv10
28 Sep 2019
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

The kinked-demand curve model of oligopoly is useful in explaining

A. the way that collusion works.
B. why oligopolistic prices and outputs are extremely sensitive to changes in marginal cost.
C. why oligopolistic prices might change only infrequently.
D. the process by which oligopolists merge with one another.

In economics, what is meant by an Oligopoly?

What are some ways to make a distinction between an Oligopolistic Market and a Market identified as having Monopolistic Competition?

Use the Keat and Young textbook as a basis for explaining the role of non-price competition within an oligopoly.

Explain The Kinked-Demand model of oligopoly, and why this model concludes that oligopolists are reluctant to compete with each other on the basis of product price.

Then choose one additional theory of Oligopoly behavior, and explain how strategies/counter-strategies and/or rivalry influence the decision making by the firm.

Throughout your answer to this question, use graphs, completely labeled, to accompany your written analyses.

Which of the following is cited as a problem with the kinked demand curve model?

   

It does not explain the price stickiness that is routinely observed in oligopolistic markets.
   

It assumes that firms determine the profit-maximizing level of output by equating marginal cost and average variable cost.
   

It does not explain how the equilibrium market price is determined.
   

It assumes that firms do not attempt to maximize profits.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in