D Question 6 1 pts A 'kinked' demand model for oligopolies attempts to show how: O Rival firms will ignore price increases but match price cuts O Demand is more elastic when cutting prices on a product O Ologopolist firms can collude and cheat the market O Competitors will copy any price increases but ignore price cuts D Question 7 1 pts There is an incentive for companies in an oligopoly to collude in order to increase revenues. Collusive agreements tend to be unstable, though. Which of the following is NOT a reason collusion fails in the long run? O Incentives to cheat Economies of scale increase efficiency O Higher prices attract competition O Firms have different costsD Question 8 1 pts Pure competition provides goods in the most efficient way. Monopolistic competition is less efficient but offers increased product variety. Oligopolies continue this trend of efficiency loss. The trade-off is that oligopolistic markets provide: O Resources for tech development O Lower barriers to entry O All of these O Highly elastic demand O None of these