Which of the following firms witnesses kinked demand curve ?
Developed by Paul M. Sweezy (1939), the kinked demand curve model explains price rigidity in an Oligopoly firm. Because rival firms match price reductions but do not follow…
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Which of the following firms witnesses kinked demand curve ?
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Developed by Paul M. Sweezy (1939), the kinked demand curve model explains price rigidity in an Oligopoly firm. Because rival firms match price reductions but do not follow price increases, the oligopolist faces an elastic demand segment above the prevailing price and an inelastic segment below it, creating a kink at the current price.
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UGC NET Commerce