The kinked demand curve model in oligopoly, developed by Paul M. Sweezy, highlights stability in pricing and output decisions among firms. This model suggests that rival firms may react asymmetrically to price changes, leading to a kink at a certain price level. Assumptions include few firms produci

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In oligopoly markets, prices often remain rigid despite cost changes. The kinked demand curve hypothesis, introduced by economist Sweezy, explains this phenomenon. It suggests that the demand curve an oligopolist faces has a kink at the current price level, with elastic demand above and inelastic de

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