Assume that five oligopolists begin with a common price of p = $15.One of the firms raises its price to $18.What are the other four firms likely to do,based on the theory of the kinked demand curve?

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The theory of the kinked demand curve suggests that rivals will often match a price increase, but not a price decrease. Therefore, the other four firms are more likely to keep their prices the same rather than raise or lower them in response to the one firm's price increase.

Assume That Five Oligopolists Begin with a Common Price of P