Diagram 1: [Insert a diagram illustrating a typical short-run profit maximization strategy in an oligopolistic market structure, showing a kinked demand curve, marginal cost curve, and marginal revenue curve.] In the diagram, the kinked demand curve represents the demand faced by an oligopolistic firm. The kink in the demand curve implies that competitors are likely to match any price decrease but not necessarily match any price increase. This creates a situation where the firm's marginal revenue (MR) is discontinuous, resulting in a gap at the kink. The firm maximizes its short-run profits at point A, where marginal cost (MC) equals marginal revenue (MR). The firm sets its price at P1 and produces output Q1, earning a supernormal profit represented by the shaded area. Diagram 2: [Insert a diagram illustrating a typical long-run profit maximization strategy in an oligopolistic market structure, showing a possible outcome of increased competition and reduced profit margins.] In the diagram, the demand curve shifts to the left, indicating increased competition in the area.

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Diagram 1: [Insert a diagram illustrating a typical short-run profit maximization strategy in an oligopolistic market structure, showing a kinked demand curve, marginal cost curve, and marginal revenue curve.] In the diagram, the kinked demand curve represents the demand faced by an oligopolistic firm. The kink in the demand curve implies that competitors are likely to match any price decrease but not necessarily match any price increase. This creates a situation where the firm's marginal revenue (MR) is discontinuous, resulting in a gap at the kink. The firm maximizes its short-run profits at point A, where marginal cost (MC) equals marginal revenue (MR). The firm sets its price at P1 and produces output Q1, earning a supernormal profit represented by the shaded area.

Diagram 2: [Insert a diagram illustrating a typical long-run profit maximization strategy in an oligopolistic market structure, showing a possible outcome of increased competition and reduced profit margins.] In the diagram, the demand curve shifts to the left, indicating increased competition in the area.

Please provide the two diagrams and also reference/bibliography

KFC
Debonaes
The Fish and Chip co
Nando's
Chesa Nyama
Chicken Licken
McDonalds
Roman's Pizza
Kausi
Demis
Picca Perfect
Mochachos
Panar
Zebra's
Burger King
SA Fast Food brands
20
Burger Perfect
Andiccio24 14
1-1 Pizza 114
Chicken Tyme is
Paza Hut is
176
65
1163
1157
1125
102
1200
1140
1251
1330
1300
1509
497
100 200 300 400 500 600 700 800 900
Transcribed Image Text:KFC Debonaes The Fish and Chip co Nando's Chesa Nyama Chicken Licken McDonalds Roman's Pizza Kausi Demis Picca Perfect Mochachos Panar Zebra's Burger King SA Fast Food brands 20 Burger Perfect Andiccio24 14 1-1 Pizza 114 Chicken Tyme is Paza Hut is 176 65 1163 1157 1125 102 1200 1140 1251 1330 1300 1509 497 100 200 300 400 500 600 700 800 900
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