Oligopoly - why a firm may not need to change its price (price rigidity)

by Julia Peters on Aug 08, 2013

This lesson shows you how to draw a diagram that further illustrates price rigidity. It explains that if the marginal costs fall on the discontinuous part of the curve (increasing or decreasing) the profit maximising level of output remains the same and therefore the firm does not need to change its level of output or its price

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