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Demand CurveFacing competition or in tacit collusion, oligopolies believe that rivals will match any price cuts and not follow their price rise. Firms view their demands as inelastic for price cuts, and elastic for price rise. Firms face kinked demand curves. This analysis explains the fact that prices tend to be inflexible in some oligopolistic industries. การกระทำใดๆของบริษัทคู่แข่งจะมีผลกระทบต่ออีกบริษัทหนึ่งFacing competition Price is above mc, and long run economic profits are possible as long as entry is restricted.
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