In: Economics
Question 6.
a. Why are firms in oligopoly interdependent?
b. Draw and explain the kinked demand curve for oligopoly. Explain
the assumption and
the reasons for an oligopoly firm to have a kinked demand
curve.
c. Comment on the following statement: ”If one player in the game
does not have a
dominant strategy, it is impossible to predict the outcome of the
game.”