In long-run equilibrium, the monopolistically competitive firm will set a price equal to O average cost average variable cost marginal cost minimum long run average cost Question 28 (Mandatory) (2 points) An informal agreement to set prices and output is called O collusion O monopolistic competition O kinked demand a cartel Question 29 (Mandatory) (2 points) The kinked demand curve theory of oligopoly assumes that rival firms react to price increases OO react to price increases and decreases O do not react to price changes react to price decreases