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Why do economists believe an oligopolist'sdemand curve may be kinked? A The government may collude with the firm to cause that type of shape. B
Why do economists believe an oligopolist'sdemand curve may be kinked?
A The government may collude with the firm to cause that type of shape.
B The oligopoly firms "cheat"and mark up prices to create that shape.
C If oligopolistsdon't collude, they may still find that competitors ignore price increases, but match price decreases.
D Intense competition may drive them to the position where the demand curve has a kink.
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