Price rigidity is an important feature of oligopoly. Can you explain w – InterviewSolution

1.	Price rigidity is an important feature of oligopoly. Can you explain what is price rigidity.
Answer» Price rigidity is an important feature of oligopoly market. In oligopoly market, price does not change m easily in response to change in demand. If one firm decides to increase the price to earn high profit and the other firms do not do so, due to increase the price, the demand of product will fall and it causes fall in revenue and profit. Hence it is not rational for any firm of increase the price. Thus in an oligopoly market, price remain rigid.

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