Question
Economics Question on Demand analysis
A kinked demand curve under oligopoly necessarily implies
A. a discontinuity in the marginal revenue schedule
B. a gap in the marginal cost schedule
C. formal collusion in price determination
D. the price need not be above marginal revenue
Choose the most appropriate answer from the options given below:
A
A and B only
B
A only
C
C and D only
D
A and D only
Answer
A only
Explanation
Solution
The correct answer is (B) : A only