15. A. B. C. D. 16. If oligopolistic firms facing similar cost and demand conditions successfully collude, price and output results in this industry will be most accurately predicted by which of the following models? The kinked demand curve model of oligopoly The price-leadership model of oligopoly The pure monopoly model The monopolistic competition model A. B. C. The kinked-demand curve of an oligopolist is based on the assumption that: competitors will follow a price cut but ignore a price increase. competitors will match both price cuts and price increases. competitors will ignore a price cut but follow a price increase. there is no product differentiation. D. 20. A monopolistically competitive firm in the short run is producing where price is $3.00 and marginal cost is $1.50. To maximize profits: A the firm should continue to produce this quantity. B. the firm should increase output and decrease price. the firm should decrease output and increase price. it is unclear what the firm should do without knowing marginal revenue. C. D.