Assignment Directions Preamble to the question:

You have to read two chapters to answer the question.

Read the chapter titled "Elasticity" in your class book.

Read the chapter titled "Oligopoly" in your class book.

Here is a link as an extra resource: https://www.economicshelp.org/blog/glossary/kinkeddemand-curve/

The following graph refers to a situation wherein an oligopolistic firm faces a kinked demand curve.

$600 (5,000, $550) (10,000, $500) $500 $400 Price ($) (11,000, $300) $300 $200 $100 0 0 5,000 10,000 15,000 20,000 Quantity 1) In one/two sentences, describe why an oligopolistic firm might face this situation (what is the name of the pricing strategy that leads to this situation?) (2 points) 2) Compute the elasticities and revenues at all THREE points shown on the graph: (5000, 550), (10000,500) and (11000,300). (6 points) 3) Specify at each point if the demand is elastic, unit elastic or inelastic. (one point) 4) Which point should this firm choose to maximize revenues? (one point) Attach and Submit in a Word, PDF, or pic format