Question: 1) Explain why answer A is wrong (Kinked-demand curve model of oligopoly). 2) Explain why answer C is correct (Pure monopoly model). If oligopolistic firms

1) Explain why answer "A" is wrong (Kinked-demand curve model of oligopoly).

2) Explain why answer "C" is correct (Pure monopoly model).

If oligopolistic firms facing similar cost and demand conditions successfully collude, price and output results in this industry will be most accurately predicted by which of the following models?

a. Kinked-demand curve model of oligopoly Incorrect

b. Price-leadership model of oligopoly

c. Pure monopoly model

d. Monopolistic competition model

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