There is a gap in the oligopolist’s marginal-revenue curve because:.

Answer

There is a gap in the oligopolist's marginal-revenue curve because of the kinked-demand theory. This theory suggests that firms in an oligopoly will match any price cuts made by a competitor but will not match price increases.

Q: What is an oligopolist? A: An oligopolist is a market structure characterized by a small number of firms dominate the market.
Q: How do oligopolies determine their price and output levels? A: Oligopolies use strategic behavior, such as collusion or price leadership, to determine their price and output levels.
Q: Why is there a gap in the oligopolist's marginal-revenue curve? A: There is a gap in the oligopolist's marginal-revenue curve because of the kinked-demand theory. This theory suggests that firms in an oligopoly will match any price cuts made by a competitor but will not match price increases.