Topic: Kinked Demand Curve Model
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What is a kinked demand curve?
The kinked-demand curve is a demand curve comprised of two segments, one results after price increase, the other after a decrease. Read More »
Source: http://www.chacha.com/question/what-is-a-kinked-demand-curve
What are the Positive and Negative aspect of Kinked demand curve ...
Positive aspect -- the company with the lower price will probably sell more -- negative aspect it can create a monopoly by one company being able to afford to take a loss on a product for a longer amount of time. If I understand this right.... Read More »
Source: http://uk.answers.yahoo.com/question/index?qid=20061107065701AABa...
Why is there a kink in the kinked demand curve?
Because suppliers are too few - a reduced price from one of them is instantly met by price-reductions from all the rest, too. It's sometimes called 'oligopoly'. As no-one has anything to gain (long-term) from price competition, it usually d... Read More »
Source: http://answers.yahoo.com/question/index?qid=20081125052613AAkTdlX
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Kinked Demand Curve Model
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The kinked demand curve predicts that reaction of demand for one of oligopolies members on change in price will not necessarily be the same (or reversed) in both directions due to specific reaction on change in price made by one of members....
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Source: http://answers.yahoo.com/question/index?qid=20080607023913AARXwrA
(i) Equation 1... total revenue = PQ = (140 - 0.5Q) Q = 140Q - 0.5Q^2 marginal revenue = d total revenue / dQ = 140 - Q Equation 2... total revenue = PQ = (200 – 2Q) Q = 200Q - 2Q^2 marginal revenue = d total revenue / dQ = 200 - 4Q (ii) th...
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Source: http://uk.answers.yahoo.com/question/index?qid=20091123054046AA1D...
A kinked demand curve in an Oligopoly market means that there is a certain price at which the demand curve will be kinked. in a pure monopoly market the demand curve responds between two options 1 buying your stuff 2 not buying it In an oli...
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Source: http://answers.yahoo.com/question/index?qid=20070209052742AAGWz7P
The kink is at the current market price. If one business puts up price there is no guarantee that others will follow. If no one follows, consumers will switch to other suppliers thus demand for that good remains the same as a whole but for ...
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Source: http://answers.yahoo.com/question/index?qid=20080520040732AAiMNzp
Hiyah, I agree that what is on the web is sometime a bit difficult to understand. Put siply, a kinked demand curve can occur if competitors do not react to price rises in the same way as price decreases. For example, they may not care that ...
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Source: http://answers.yahoo.com/question/index?qid=20091130051504AAhMeXx
There is no critiscism per se on kinked demand curve. It is formed from a 'leader follower' attitude of the market which is very much visible among olgiopolistic companies. I don't know where you got the idea of critiscism of something whic...
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Source: http://answers.yahoo.com/question/index?qid=20070102125500AA7wGqQ
