Underlying assumptions of kinked-demand curve

Assignment Help Microeconomics

Reference no: EM1371166

What assumptions about the rival's response to price changes underlie the kinked-demand curve for oligopolists? Why is there the gap in the oligopolist's marginal-revenue curve? How does the kinked-demand curve describe price rigidity in oligopoly? What are the shortcomings of the kinked-demand model?

Reference no: EM1371166

Questions Cloud

Llustrate what increase in g is necessary to achieve target : llustrate what increase in G is necessary to achieve target output in domestic economy. Illustrate what would be increase in G and T needed if government wanted to keep a balanced budget.

Explain loni delivers her mazda to be repaired : Explain Loni delivers her Mazda to be repaired at Nile's Body Shop and Loni agrees to pay cash and Nile performs but Loni does not pay

For what wavelength of light will first-order dark fringe : A bat emits a sound whose frequency is 91.20 kHz. The speed of sound in air at 20 degrees Celcius is 343m/s. However the air temperature is 38.8 degrees Celcius, so the speed of sound is not 343m/s. imagine that air behaves like an ideal gas, and ..

Write function in javascript to compute person-s gross pay : Write the function using JavaScript syntax to compute a person's gross pay for a week. The function should receive the number of hours worked and the rate of pay per hour.

Underlying assumptions of kinked-demand curve : What assumptions about the rival's response to price changes underlie the kinked-demand curve for oligopolists? Why is there the gap in the oligopolist's marginal-revenue curve? How does the kinked-demand curve describe price rigidity in oligopoly..

Explain how do efficiency techniques differ in short- run : Explain how do efficiency techniques differ in short- versus long-run when attempting to maximize profits. Illustrate what specific incentives are used in your workplace to promote efficiency.

Summarize current changing attitudes : Describe how the changing attitudes of the times were expressed through these various political events and movements such as civil rights.

Explain extend credit for part or all of the purchase price : Explain extend credit for part or all of the purchase price of the goods and refer purchasers to a third-party lender

Possibility of potential adoptive parents : As we know that there are some people who cannot have children who want to adopt, and there are pregnant women who for various reasons want to put their babies up for adoption

User Account

All Pages