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Unformatted text preview: ED of the demand curve causes a significant fall in the quantity demanded from Q to Q 2 . This again will cause total revenue of the oligopolist to be smaller at higher price. The oligopolist is rigidly fixed at E, the point of Kink with P as the price. This therefore is also called sticky price solution ....
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This note was uploaded on 11/26/2011 for the course ECON MICRO ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10