In the kinked-demand curve variant of oligopoly theory,what output will the firm produce?

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The kinked-demand curve theory suggests that the demand curve facing an oligopolistic firm is relatively elastic above the prevailing market price and relatively inelastic below it. Therefore, if the firm were to raise its price, it would lose a significant portion of its customers to rival firms, but if it were to lower its price, other firms would likely follow suit and the firm would not gain enough market share to make up for the lower price. Thus, the theory predicts that firms will be hesitant to change their prices, resulting in a perceived "kink" in the demand curve at the prevailing price. Given this, the best output choice for the firm would be where marginal cost equals marginal revenue, as this would help the firm maximize its profits at the prevailing price and output level.

In the Kinked-Demand Curve Variant of Oligopoly Theory,what Output Will