2.a. In a Sweezy oligopoly (kinked demand model). If your competitor should raise their price what

would be your firm's price strategy?

b.Assuming part ( a )is occurring what elasticity characteristic would the product show in this

type of market?

c. What happens to the output of a firm if its marginal cost rises in a Sweezy oligopoly?

d. If your competitor lowers their price what would be your price strategy in this Sweezy model?

e. Why could the actions of part ( d ) lead to a disaster to both competing firms?