oligopoly Flashcards
1
Q
what is an oligopoly
A
where a small number of firms dominate the market
2
Q
what happens with selling power in oligopolies
A
they have power but don’t use it
3
Q
what is the demand curve in oligopolies like
A
kinked demand curve
4
Q
what does the kinked demand curve show
A
the kinked demand curve shows how if a firm increases its price from the kink price will be elastic but if it lowers its price it will be elastic. This is because of how the other firms in the market behave
