Kinked-demand curve for oligopolists

Assignment Help Macroeconomics
Reference no: EM131046075

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 marginal-revenue curve? How does the kinked demand curve explain price rigidity in oligopoly?

Reference no: EM131046075

Questions Cloud

Research the work health safety act : Each State and Territory has a principal health and safety Act which sets out requirements for ensuring that workplaces are safe and healthy. These requirements spell out the general responsibilities of different groups of people who play a role i..
Evaluate different aspects of organizational change : Evaluate different aspects of organizational change. Discuss the role that leader vision and organizational climate plays in a change management strategy.
Basic charge against microsoft by the government : Answer all the following questions. Provide specific examples to support your answers. What was the basic charge against Microsoft by the government?
Describe what it means to prove something : In your own words, describe what it means to prove something. Compare and contrast how proving something in mathematics may be different from proving something in your everyday interactions
Kinked-demand curve for oligopolists : 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 marginal-revenue curve? How does the kinked demand curve explain price rigidity in oligopoly?
Produce goods and services : The expression, "There's no such thing as a free lunch," implies that a. everyone has to pay for his own lunch. b. the person consuming a good must always pay for it. c. opportunity costs are incurred when resources are used to produce goods and s..
Remote rural route : Suppose you give up a job and use some savings to buy a small bus which you drive on a remote rural route. Which of the following costs of your firm is an explicit cost?
Bp and queensland floods case studies : 1. Identify the publics in the BP and Queensland floods case studies? ( 100 words) 2. Segment and Prioritise the Publics? (150 words) 3.
How many students take history : A survey of 100 students at new england college showed the following:7 take english,history and language, 17 take english and history,15 take english and language,18 take history and language,  how many students take history but neither of the othe..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Find market price for hydrogen gas and normalize energy

Find a market price for hydrogen gas and normalize the energy content compared to the current local price of gasoline. Using octane as an approximation for gasoline energy content, compare the cost per kilojoule of energy of hydrogen to gasoline

  What are the starting salaries of economics majors

Starting salaries of economics majors have a mean of $47,000/year with a standard deviation of $8,000. What is the probability that a random sample of 100 majors will have an average salary of more than $50,000 year?

  Determine change in medallion fee that maximizes firm profit

The market for taxi services in a Midwestern town is monopolized by firm 1. Currently, any taxi services firm must purchase a $40 thousand "Medallion" from the city in order to offer its services. A potential entrant (firm 2) is considering enteri..

  How the economys long-run economic growth rate has changed

Provide an economic explanation of what you have shown in your diagram above. Discuss what happens to (1) economic output-per-worker and Discuss the adjustment process that occurs during the transition period from the economy's post-disease situati..

  How to interpret the s.o.c

Given a perfectly competitive firm in the input and output markets where: P0 = exogenous price, Q = f(K0 , L) where dQ/dL > 0 and d2Q/dL2

  Assume the new leadership in congress decides to repeal

Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses during the past several years.

  Effect of the tariff on agronomias welfare

Calculate the terms-of-trade gain and what is the net effect of the tariff on Agronomia's welfare?

  How are the following calculations are madewhen income

how are the following calculations are made?when income increased by 10 the quantity of memberships of athletic clubs

  A consider a competitive market supple and demand model if

a. consider a competitive market supple and demand model. if there are no externalities explain why economists describe

  Explain alternatives to traditional monetarist devices

explain alternatives to traditional monetarist devices be identified in modern economies.

  Question about demand curve

Demand by senior citizens for showings at local movie house has a constant price elasticity equal to-4. The demand curve for all other patrons has constant price elasticity equal to-2.

  What is the rate of return on this investment per six months

John Q is planning to buy a bond having a face value of $100,000 for $90,000. The bond is paying 8% per year payable semi-annually and is redeemable 6 years from now at its face value. What is the rate of return on this investment per six months a..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd