In the kinked demand curve oligopoly model, the assumption is that if one firm increases its price, the other firms will:
A) raise their prices.
B) lower their prices.
C) hold their prices constant.
D) either raise their prices, lower their prices, or leave them constant.

Question

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In the kinked demand curve oligopoly model, the assumption is that if one firm increases its price, other firms will not follow suit and will instead hold their prices constant, leading to a loss of market share for the firm that increased its price.

In the Kinked Demand Curve Oligopoly Model, the Assumption Is