Question

Demand curve of a firm is indeterminate in case of _______.

• A. monopoly
• B. oligopoly
• C. duopoly
• D. none of the above

Answer 1

The correct option is C duopoly

Duopoly is a market where there are only big firms that influence the market with many small firms that no influence over the market. Under this type of market, the demand curve is indeterminate which is known as a kinked shaped demand curve due to the high interdependence of firms on to each other because of which the decision of each firm keeps changing continuously.