The kinked demand curve model-jointly developed by economists Sweezy, Hall, and Hitch-was an attempt to demonstrate the _____ run for oligopolies.
A) stability of prices over the long
B) instability of prices over the long
C) instability of prices over the short
D) stability of prices over the short

Question

Quizplus · Accepted Answer

The kinked demand curve model suggests that oligopolies may have a stable price over the long run due to the kink in the demand curve.

The Kinked Demand Curve Model-Jointly Developed by Economists Sweezy, Hall