Question 4 The kinked demand model of nonoollusive oligopoly assumes that: @ Rivals will ignore price increases and match price cuts Good Job! Each rm is a leastcost producer of the product Marginal revenue is greater than marginal cost at the kink Demand is elastic throughout the range of production The kinkeddemand curve is dened as "A demand curve based on the assumption that rivals will ignore a price increase and follows price decrease.\" (p. 203)