Kinked demand curve is a feature of which of the following market structures?

Monopoly

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Oligopoly

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Monopsony

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Duopoly

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Solution

The correct option is A Oligopoly
In an oligopolistic market, the kinked demand curve hypothesis states that the firm faces a demand curve with a kink at the prevailing price level. The curve is more elastic above the kink and less elastic below it. This means that the response to a price increase is less than the response to a price decrease

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