Which assertion about the ‘kinked demand curve’ model of oligopoly is not correct?
- AThe kink in the demand curve of each firm is based on expectations about other firms’ responses to changes in its price.
- BThe marginal revenue curve of the firm has a vertical segment at the market price.
- CThe model explains how the equilibrium market price is determined.
- DThe model suggests price stickiness within a certain range of marginal costs.