File:Kinked demand.svg
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DescriptionKinked demand.svg |
English: A diagram illustrating kinked demand, one formulation for explaining price stability in oligopolies. The demand curve the oligopolist faces is that of two separate curves spliced together, creating a discontinuity in the MR curve. This means that a profit maximising firm will still produce at quantity Q and price P if marginal costs are equal to MC1, MC2 or MC3, thus explaining price stability. (Here, both curves are illustrated as linear, though the concept would work exactly the same if they were not.) |
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This image is a derivative work of the following images:
- File:Perfect_competition_in_the_short_run.svg licensed with Cc-by-sa-3.0
- 2010-10-15T16:18:39Z Jarry1250 580x400 (2908 Bytes) == int:filedesc == == int:filedesc == Better economics
- 2010-10-05T20:59:03Z Jarry1250 560x400 (3824 Bytes) == Summary == Economics error fixed.
- 2010-10-05T20:52:52Z Jarry1250 560x400 (3823 Bytes) == Summary == Try to realign again.
- 2010-10-05T20:51:10Z Jarry1250 560x400 (3823 Bytes) == Summary == == Summary == Minor fixes
- 2010-10-05T20:45:52Z Jarry1250 560x400 (3803 Bytes) {{Information |Description={{en|Diagram showing that it is possible that a firm in [[:en:perfect competition|]] makes an [[:en:Economic profit|abnormal profit]], if P > min(ATC). In the [[:en:long run|]], however, only normal
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Date/Time | Thumbnail | Dimensions | User | Comment | |
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current | 19:40, 1 January 2011 | 580 × 480 (2 KB) | Jarry1250 (talk | contribs) | {{Translation possible}} {{Information |Description={{en|A diagram illustrating en:kinked demand, one formulation for explaining price stability in oligopolies. The demand curve the oligopolist faces is that of two separate curves |
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