Start learning →

In the kinked demand model, the marginal revenue curve has:

AA constant slope
BA positive slope
CA gap at the kink
DA horizontal shape
Answer & Solution
Correct answer: C. A gap at the kink
The bend in the demand curve makes marginal revenue jump, leaving a vertical gap at the kink.
Practise this question with Quill — CA Foundation →

Keep practising Price-Output Determination under Different Market Forms

Browse all Price-Output Determination under Different Market Forms questions for CA Foundation, or explore more Business Economics topics.

Start a Price-Output Determination under Different Market Forms lesson →
Related questions