Home
Class 11
ECONOMICS
What is mean by price being rigid ? How ...

What is mean by price being rigid ? How can oligopoly behaviour lead to such an outcome ?

Text Solution

Verified by Experts

Rigid prices means that even if cost or demand changes there will be no change in the price of the commodity. Oligopoly behaviour leads to such rigid prices because firms try to avoid price competition, otherwise there will be price wars.
Promotional Banner

Topper's Solved these Questions

  • FORMS OF MARKET AND PRICE DETERMINATION UNDER PERFECT COMPETITION WITH SIMPLE APPLICATIONS

    RADHA BHUGANA|Exercise VERY SHORT ANSWET TYPE QUESTIONS (1 MARK)|2 Videos
  • FORMS OF MARKET AND PRICE DETERMINATION UNDER PERFECT COMPETITION WITH SIMPLE APPLICATIONS

    RADHA BHUGANA|Exercise VALUE BASED QUESTIONS|3 Videos
  • ELASTICITY OF DEMAND

    RADHA BHUGANA|Exercise Unsolved Numericals|24 Videos
  • INTRODUCTION

    RADHA BHUGANA|Exercise Unsolved Numericals|4 Videos

Similar Questions

Explore conceptually related problems

What is mean price.

What do you mean by rotational motion of a rigid body?

How cleanliness can lead to extinction of species ?