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Explain the kinked demand curve

The Kinked Demand Curve theory is a concept used in economics to explain price stability in oligopolistic markets, where a few large firms dominate. This theory suggests that in such markets, the demand curve a firm faces for its products has a distinctive kinked shape due to the expected reactions of competitors to c 

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Answered by: Nina T
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What are supply side policies and how do they effect the economy?

Supply-side policies are strategies aimed at increasing the productive capacity of an economy, focusing on boosting the efficiency and productivity of producing goods and services. These policies generally involve measures like encouraging investment in technology and infrastructure, improving education and skills tra 

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Answered by: Nina T
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What is meant by an oligopoly being both interdependent and uncertain in their price strategies?

Interdependence the limited number of players, each firm's actions, especially regarding pricing, directly affect the others. For example, if one firm lowers its prices, it can significantly impact the market share of the other firms. This interdependence means that firms in an oligopoly must consider the potential re 

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Answered by: Krysia K
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