Answer to Question #67693 in Microeconomics for doris

Question

using relevant example differentiate between monopoly and monopolistic competition
explain the implication and short coming of the kinked demand curve in an oligopolistic market

Answer 1

There is a monopoly, when we have only one producer, but there is a monopolistic competition, when there is a lot of producers in the market, which produce differentiated products.
The kinked demand curve model assumes that a business might face a dual demand curve for its product based on the likely reactions of other firms to a change in its price or another variable.