Oligopoly Equilibrium - There is no incentive on the part...

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Oligopoly Equilibrium: Once a Kink in the demand curve is known and given, oligopoly equilibrium automatically follows. The point of Kink such as E is itself an equilibrium point . Moreover, such an equilibrium is rigid and stable.
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Unformatted text preview: There is no incentive on the part of the oligopolist to move away from the point of Kink. Any attempt on his part either to lower or raise the price will not be to his advantage. This can be explained with the help of Figure 46....
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This note was uploaded on 11/26/2011 for the course ECON MICRO ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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