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Questions › UGC-NET › UGC-NET 2025 › Q76
2 marksMicroeconomics › Monopolistic competition and oligopoly › Cartels, collusion and the kinked demand curveHardabout 2 min

UGC-NET 2025 Question 76: Monopolistic competition and oligopoly

Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R).

Assertion (A): The Organisation of Petroleum Exporting Countries (OPEC) has failed to maintain high prices of petroleum products in the long run.

Reason (R): For petroleum products both the demand and supply are inelastic in the long run.

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Answer and worked solution

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Monopolistic competition and oligopoly has come up 104 times in 7 exams since 2004.

What this question tests

This question is on Cartels, collusion and the kinked demand curve, part of Monopolistic competition and oligopoly in Microeconomics.

How firms coordinate to raise profit and why prices in oligopoly can be rigid.

TestStop has 13 past-paper questions on this subtopic.

Take this paper as a timed mockMore on Cartels, collusion and the kinked demand curve

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Question from the UGC-NET 2025 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.