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प्रश्न
In an oligopoly with a kinked demand curve, why do prices tend to remain rigid around the kink?
पर्याय
Because AR is horizontal at all output levels
Because MR is always equal to AR
Because the MR curve has a discontinuous gap around the kink
Because TR increases at a constant rate
MCQ
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उत्तर
Because the MR curve has a discontinuous gap around the kink
Explanation:
The MR curve has a vertical gap near the kink, so small cost changes do not change the profit-maximising output and price, making price sticky.
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