logging in or signing up oligopoly & the kinked demand curve chrisk97 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 328 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: March 29, 2011 This Presentation is Public Favorites: 1 Presentation Description This presentation investigates why oligopolies might lead to price ridgidty. Comments Posting comment... Premium member Presentation Transcript The Kinked Demand Curve: The Kinked Demand Curve Why do prices remain relatively stable in a non-collusive oligopoly?Slide 2: Non-collusive oligopolyAbove P : Elastic Demand: Above P : Elastic Demand “Change in the price of the product leads to a greater than proportionate change in the quantity demanded of it.”Above $5: Elastic Demand: Above $5: Elastic Demand “Change in the price of the product leads to a greater than proportionate change in the quantity demanded of it.”Below P: Inelastic Demand: Below P: Inelastic Demand “A change in price of the product leads to a proportionally smaller change in the quantity demanded of it.”Below $5 : Inelastic Demand: Below $5 : Inelastic Demand “A change in price of the product leads to a proportionally smaller change in the quantity demanded of it.”Slide 16: Marginal Revenue Curve: above the kinkSlide 17: Marginal Revenue Curve: below the kinkSlide 18: Marginal Revenue Curve: below the kinkSlide 20: Kinked Demand curve with MRSlide 21: Kinked Demand curve with MRSlide 22: Profit maximization where…In summary…Reasons for price rigidity: In summary…Reasons for price rigidity If a firm tries to raise the price…In summary…Reasons for price rigidity: In summary…Reasons for price rigidity If a firm tries to raise the price… 2. If a firm tires to lower the price…In summary…Reasons for price rigidity: In summary…Reasons for price rigidity If a firm tries to raise the price… 2. If a firm tires to lower the price… 3. Vertical MR allows range of MC at the same…. _______ You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
oligopoly & the kinked demand curve chrisk97 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 328 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: March 29, 2011 This Presentation is Public Favorites: 1 Presentation Description This presentation investigates why oligopolies might lead to price ridgidty. Comments Posting comment... Premium member Presentation Transcript The Kinked Demand Curve: The Kinked Demand Curve Why do prices remain relatively stable in a non-collusive oligopoly?Slide 2: Non-collusive oligopolyAbove P : Elastic Demand: Above P : Elastic Demand “Change in the price of the product leads to a greater than proportionate change in the quantity demanded of it.”Above $5: Elastic Demand: Above $5: Elastic Demand “Change in the price of the product leads to a greater than proportionate change in the quantity demanded of it.”Below P: Inelastic Demand: Below P: Inelastic Demand “A change in price of the product leads to a proportionally smaller change in the quantity demanded of it.”Below $5 : Inelastic Demand: Below $5 : Inelastic Demand “A change in price of the product leads to a proportionally smaller change in the quantity demanded of it.”Slide 16: Marginal Revenue Curve: above the kinkSlide 17: Marginal Revenue Curve: below the kinkSlide 18: Marginal Revenue Curve: below the kinkSlide 20: Kinked Demand curve with MRSlide 21: Kinked Demand curve with MRSlide 22: Profit maximization where…In summary…Reasons for price rigidity: In summary…Reasons for price rigidity If a firm tries to raise the price…In summary…Reasons for price rigidity: In summary…Reasons for price rigidity If a firm tries to raise the price… 2. If a firm tires to lower the price…In summary…Reasons for price rigidity: In summary…Reasons for price rigidity If a firm tries to raise the price… 2. If a firm tires to lower the price… 3. Vertical MR allows range of MC at the same…. _______