Underlying assumptions of kinked-demand curve

Reference no: EM1371166

What assumptions about the rival's response to price changes underlie the kinked-demand curve for oligopolists? Why is there the gap in the oligopolist's marginal-revenue curve? How does the kinked-demand curve describe price rigidity in oligopoly? What are the shortcomings of the kinked-demand model?

Reference no: EM1371166

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