Assignment Directions : An oligopolist faces a kinked demand curve . In your own words , describe why firms face this situation $600 (5,000, $550) (10,000, $500) $500 $400 Price ($) (11,000, $300) $300 $200 $100 0 0 5,000 10,000 15,000 20,000 Quantity Theory says that oligopolies should stick to the $500.00 price to maximize revenue (see the graph above ). Use the graph pictured to calculate total revenue in the elastic , inelastic , and unit elastic portions of the demand curve at the price and quantity points specified to explain the theory. Part 1: The kinked demand curve is a model for oligopoly and monopolistic competition that explain the prices that are high and low. Also, it is not a straight line on graph, but rather more of a curve