Order the answer to: 4. A kinked demand curve can explain rigidity of oligopolists’ administered price. What does inf

Academic Help economy Order the answer to: 4. A kinked demand curve can explain rigidity of oligopolists’ administered price. What does inf

economy

Order the answer to: 4. A kinked demand curve can explain rigidity of oligopolists’ administered price. What does inf

Question 4. A kinked demand curve can explain rigidity of oligopolists' administered price. What does inflexible, administered pricing mean? a. b. Why would an oligopolist have little motivation to change its price frequently? In the diagram below, assume that the equilibrium price is at point G. Is this over costs? Is the oligopolist earning economic profit? Explain C. d. At G there is a kink in the effective demand and marginal revenue curves of the oligopolist. Why? i. If it cuts price below G, will rivals follow? i. If it raises price above G, will rivals follow? Will customers leave this oligopolist and purchase from a rival? i. How do your answers to (i) and (ii) above explain the relative elasticity of the demand curve segment DG from the relative elasticity of the demand segment dG? curve iv. If improved productivity in labor to shift downward, what does the kinked demand curve analysis say about the likelihood that the oligopolist will share the improved productivity with its customers by lowering its price? capital causes the marginal cost curve or KINKED OLIGOPOLY DEMAND P D MC d AC E D MR Q QUANTITY PRICE LG
Subject economy
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