Explain the implications and short comings of the kinked demand curve in an oligopolistic marke
1
Expert's answer
2017-04-26T10:49:07-0400
There are two major disadvantages in the kinked-demand-curve explanation. Firstly, it denies output fluctuations in response to changes in cost, a stability unsupported by evidence. Secondly, the theory don't explain for how the current price (at which the demand curve is kinked) is arrived at.
"assignmentexpert.com" is professional group of people in Math subjects! They did assignments in very high level of mathematical modelling in the best quality. Thanks a lot
Comments
Leave a comment