What assumptions about a rivals response to price changes


What assumptions about a rival's response to price changes underlie the kinked-demand curve for oligopolists? Why is there a gap in the oligopolist's marginal-revenue curve? How does the kinked demand curve explain price rigidity in oligopoly?

Solution Preview :

Prepared by a verified Expert
Macroeconomics: What assumptions about a rivals response to price changes
Reference No:- TGS01391947

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)