Because of price rigidity, firms under oligopoly face a ____ demand curve.
Kinked
The correct answer is option 3. In an oligopoly market, due to price rigidity, firms often face a kinked demand curve. The kinked demand curve theory suggests that if a firm changes its price, competitors will either follow suit (if the price decreases) or not change their prices (if the price increases), leading to a kink in the demand curve.
Similar Questions
Under the oligopoly market, according to __________, each producer can always lower the price until the price becomes equal to the cost of production.
______ may be defined as a market situation in which market price is largely determined by the forces of total demand and total supply in the market.
Under ____ the cross elasticity of demand between the product of the firm and that of other commodity in the market is zero.
In a competitive market, _______ is the price maker.
Under which market condition does the firm make only normal profit in the long run?
Important Questions from Markets
Under the oligopoly market, according to __________, each producer can always lower the price until the price becomes equal to the cost of production.
______ may be defined as a market situation in which market price is largely determined by the forces of total demand and total supply in the market.
Under ____ the cross elasticity of demand between the product of the firm and that of other commodity in the market is zero.
State one limitation of the operation of a supermarket.
In a competitive market, _______ is the price maker.
