If an oligopolist is faced with a marginal revenue curve that has a gap in it, we may assume that

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A gap in the marginal revenue curve of an oligopolist suggests that its demand curve is kinked. This means that the oligopolist's rivals will not follow if the oligopolist raises its price, but will follow if the oligopolist lowers its price. This creates a gap in the marginal revenue curve, as a small change in price results in no change in revenue, as long as the price remains within the range determined by the kink in the demand curve.

If an Oligopolist Is Faced with a Marginal Revenue Curve