Question

(a) What is meant by price rigidity, under oligopoly.
(b) Elaborate the impliation of the conditions of equilibrium of a firm.

Answer 1

(a) Stock refers to the total quantity of a commodity available with the seller at any given time. Whereas, supply refers to that quantity of a commodity which a seller is willing to sell at different prices during a given period of time.
(b) $$\begin{array}{cccc}\text{Units}& \text{TPP}& \text{APP}& \text{MPP}\\ \text{Produced}& \text{INRs.}& \text{inRs.}& \text{InRs.}\\ 0& 0& -& -\\ 1& 100& 100& 100\\ 2& 240& 120& 140\\ 3& 420& 140& 180\\ 4& 480& 120& 60\end{array}$$