The length of the discontinuous zone of the marginal revenue (MR) curve corresponding to the demand…
The length of the discontinuous segment of the marginal revenue curve depends on demand elasticity on the two sides of the kink. Different elasticities above and below the…
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The length of the discontinuous zone of the marginal revenue (MR) curve corresponding to the demand curve under the kinked demand curve model depends on
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Correct answer D
The length of the discontinuous segment of the marginal revenue curve depends on demand elasticity on the two sides of the kink. Different elasticities above and below the prevailing price produce different marginal revenues at the kink and hence the gap.
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West Bengal SET (WB SET)