Glossary Category: Market Structures

kinked demand curve and revenue

The kinked demand curve model explains why prices in an oligopolistic market (a market with few large sellers)

The kinked demand curve explains how companies in an oligopoly (a market with few large sellers) react to

Price leadership happens when one company in an oligopoly (a market with very few sellers) sets or changes

Predatory pricing is a business strategy where a company sets its prices below cost to drive competitors out

Limit pricing is a strategy used by a dominant company to set its prices below the cost that

When businesses charge different prices to different customers for the same product, it leads to several consequences: For

For a business to successfully practice price discrimination—charging different prices to different customers for the same product—several key

Third-degree price discrimination occurs when a business charges different prices to distinct groups of consumers for the same

Second-degree price discrimination happens when a business charges different prices based on the quantity bought or the version

First-degree price discrimination occurs when a company charges each individual customer the maximum price they are willing to