What is the basis of the kinked-demand model? Explain the reason for the gap in the oligopolists

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What is the basis of the kinked-demand model? Explain the reason for the gap in the oligopolists’ marginal-revenue curve. How does this model explain price rigidity in oligopoly?

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Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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Question Posted: Aug 05, 2013 03:38 AM

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What is the basis of the kinked-demand model? Explain the reason for the gap in the oligopolists

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The main focus of the model is on the shape of the demand curve facing a firm Unlike typical downwar...View the full answer

Introduction to Corporate Finance

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