![]() The kinked-demand curve for oligopolists assumes that rivals willĪ.Oligopolistic organizations which can collude and join a cartel Kinked demand curve is indicates the behavior approach in the The firms produce standardized or identical products and it isĪssumed they cannot form a cartel or collude. Produce simultaneously and independently and is applicable wherein That the response to a price increase will be less than theī) Due to the kinked nature of the demand curve, an output rangeĮxists in the marginal revenue curve is vertical such that anyĬhange in marginal cost do not impact the profit-maximizing outputĬ) In the Cournot model the competing firm choose a quantity to ![]() The curve will be lessĮlastic below the kink and more elastic above the kink. Reduce the prices to secure their share in market, however restrictĪn increase in the prices. Oligopolistic organizations wherein the competitor organizations A) A kinked demand curve indicates the behavior approach in the
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