question archive When a company is faced by a kinked demand curve, the marginal revenue curve: a
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When a company is faced by a kinked demand curve, the marginal revenue curve:
a. will be upward sloping.
b. will be horizontal.
c. will always be zero at the quantity produced.
d. will be discontinuous.
The correct answer is d. will be discontinuous.
The marginal revenue curve of the kinked demand curve oligopoly is discontinuous. The marginal revenue curve is discontinuous at the quantity supplied point.