A kinked demand curve occurs when the demand curve is not a straight line but has a different elasticity for higher and lower prices. This model of oligopoly suggests that a Kinked Demand Curve shows...

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Extracted text: A kinked demand curve occurs when the demand curve is not a straight line but has a different elasticity for higher and lower prices. This model of oligopoly suggests that a Kinked Demand Curve shows that (note: if there is an increasing in MC): O a. There is no tendency for firm to change their price as there are no benefit to do so. O b. All answers are correct O c. Decreasing price will be the best strategy for firm in oligopoly. O d. Increasing price will be the best strategy for firm in oligopoly.