In which market competition is associated with ‘Kinky Demand Curve’?

Oligopoly
Monopoly
Monopolistic Competition
Perfect Competition

The correct answer is: A. Oligopoly

An oligopoly is a market structure in which a small number of large firms dominate the market. This means that each firm has a significant amount of market power, and can therefore influence the price of its products.

A kinked demand curve is a type of demand curve that is characteristic of oligopolistic markets. It is characterized by a relatively flat section at the current price, and a steeper section at higher prices. This means that firms in an oligopolistic market are reluctant to raise prices, as they know that their competitors will likely follow suit, and they will lose market share. However, they are also reluctant to lower prices, as they know that their competitors will likely match their price cuts, and they will not make any additional profit.

Monopoly is a market structure in which there is only one firm in the market. This means that the firm has a monopoly on the supply of its product, and can therefore charge whatever price it wants.

Monopolistic competition is a market structure in which there are a large number of firms, each of which produces a slightly different product. This means that firms in a monopolistically competitive market have some market power, but not as much as firms in an oligopolistic market.

Perfect competition is a market structure in which there are a large number of firms, each of which produces an identical product. This means that firms in a perfectly competitive market have no market power, and must therefore charge the same price as their competitors.

In conclusion, the correct answer is: A. Oligopoly.

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