Homework answers / question archive / Why do economists believe an oligopolist's demand curve may be kinked? A

Why do economists believe an oligopolist's demand curve may be kinked? A

Marketing

Share With

Why do economists believe an oligopolist's demand curve may be kinked?

A. The government may collude with the firm to cause that type of shape.

B. The oligopoly firms "cheat" and mark up prices to create that shape.

C. If oligopolists don't collude, they may still find that competitors ignore price increases, but match price decreases.

D. Intense competition may drive them to the position where the demand curve has a kink.