what is a kinked demand curve
The Kinked-Demand curve theory is an economic theory regarding oligopoly and monopolistic competition. When it was created, the idea fundamentally challenged classical economic tenets such as efficient markets and rapidly changing prices, ideas that underlie basic supply and demand models.hey are distinguished by a hypothesized concave bend with a discontinuity at the bend-the kink.. Therefore, the first derivative at that point is undefined and leads to a jump discontinuity in the marginal revenue curve.