A kinked demand curve is often used when economists try to analyse how oligopolists operate. What does the kinked demand curve show?
- AOligopolists are unable to achieve profit maximisation.
- BSatisficing is the best objective for firms that operate under conditions of oligopoly.
- CThere are always benefits available for oligopolists if they reduce price, but not if they increase it.
- DThere is a tendency towards price stability when firms operate under conditions of oligopoly.