The Kinked-shaped revenue curve of a firm relates to which one type of the market structure?
The kinked demand (average revenue) curve model was developed by Paul M. Sweezy (1939) to explain price rigidity in non-collusive Oligopoly markets, where rival firms match…
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The Kinked-shaped revenue curve of a firm relates to which one type of the market structure?
Answer and explanation
Correct answer B
The kinked demand (average revenue) curve model was developed by Paul M. Sweezy (1939) to explain price rigidity in non-collusive Oligopoly markets, where rival firms match price reductions to protect market share but do not follow price increases.
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UGC NET Commerce