GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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‘Kinked Demand curve approach’ is concerned with
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dual Pricing
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price rigidity
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price flexibility
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price discrimination
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Explanation:
Detailed explanation-1: -Answer: In an oligopolistic market, the kinked demand curve hypothesis states that the firm faces a demand curve with a kink at the prevailing price level. The curve is more elastic above the kink and less elastic below it. This means that the response to a price increase is less than the response to a price decrease.
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