The existence of a kinked demand curve in an oligopoly will make market prices unstable.

Name: The existence of a kinked demand curve in an oligopoly will make market prices unstable.
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The kinked demand curve model in oligopoly suggests that prices tend to be stable because firms will not change their prices if they believe competitors will not follow suit, leading to a situation where prices are rigid even in the face of cost changes.

The Existence of a Kinked Demand Curve in an Oligopoly