PPT-Kinked Demand Curve Model

Prepared by Anindita Chakravarty INTRODUCTION The kinked demand curve of oligopoly was developed by Paul M Sweezy in 1939 The model advocates that the behavior of oligopolistic organizations remain stable . 11.203 Kinked Demand Curve Theory Game Theory Ad apted from Parkin (2003) 6 th ed. October 28, 2010 Revised 10/28/2010 at 1pm 1 Kinked Demand Curve Theory Remember: In oligopoly, the quanti by Michael Bradfield Dalhousie University Working Paper No. 2007-06 April 2007 DEPARTMENT OF ECONOMICS DALHOUSIE UNIVERSITY HALIFAX, NOVA SCOTIA, CANADA B3H 3J5 The Kinked Demand Curve with a A table showing how much of a good or service consumers will want to buy at different prices. See pg. 50; Figure 5.1. Demand Schedule. Demand Curve – A graphical representation of the demand schedule. A2 Economics. Barriers to Entry. Write down as many barriers to entry in an oligopolistic market as you can.. With short description.. Aims and Objectives. Aim: . To understand firm behaviour in an oligopoly.. The Kinked Demand Curve. A2 Economics. Aim. To fully understand kinked demand curve theory.. Objectives. Define . perfect oligopoly and an imperfect . oligopoly. .. Explain the features of a competitive oligopoly.. Oligopoly. : . a situation in which a particular market is controlled by a small group of firms. . Product . may be . homogeneous. . (. eg. steel, cement) = pure/homogeneous oligopoly. . . Mostly . Dynamics . of markets:. Imperfect . markets. OLIGOPOLIES. Oligopoly. : . a situation in which a particular market is controlled by a small group of firms. . H. omogeneous product oligopoly: . intermediate goods used by different industries to manufacture goods . 11b - Oligopoly. Oligopoly. 1. Characteristics and Examples. 2. Nature of the Demand Curve. 3. Short Run Equilibrium . 4. Long Run Equilibrium and Efficiency. 5. Other Issues. ARE BUSINESSES EFFICIENT?. Goran. . Skosples. 8. . Economic . Fluctuations. difference between short run & long run. the IS curve, and its relation to. the Keynesian Cross. the Loanable Funds model. the LM curve, and its relation to. Goran. . Skosples. 8. . Economic . Fluctuations. difference between short run & long run. the IS curve, and its relation to. the Keynesian Cross. the Loanable Funds model. the LM curve, and its relation to. Economics of Oligopoly Topic 3.3. 9 Economics of Oligopoly Topic 3.3. 9 Students should be able to: Understand the characteristics of this market structure with particular reference to the interdependence of In this lesson, students will identify factors which can cause a demand curve to shift.. Students will be able to define and/or identify the following terms:. Ceteris Paribus. Shifts in the Demand Curve. Explain. the law of demand and how a demand schedule is represented in a demand curve. . Understand. the difference between and individual and a market demand curve.. Law of Demand. Key Terms. Demand. 1-What is a “change in the quantity demanded”. ?. The movement along the demand curve showing that the amount someone is willing to purchase changes when the price changes. .. 2-Explain the “. Income Effect.