The conclusion arrived at from a kinked-demand oligopoly model is that:

Question

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According to the kinked-demand oligopoly model, firms in an oligopoly should keep their prices at the current level because if they raise their prices, they will lose too many customers to their competitors, and if they lower their prices, their competitors will follow suit and lower their prices as well, resulting in a price war that benefits no one. Therefore, the best strategy for an oligopoly firm is to maintain status quo pricing.

The Conclusion Arrived at from a Kinked-Demand Oligopoly Model Is