Which of the following apply to oligopoly industries? Select one or more answers from the choices shown.
a. A few large producers.
b. Many small producers.
c. Strategic behavior.
d. Price taking.
5. Faceblock, Gargle+, and MyMace are rival firms in an oligopoly industry. If kinked-demand theory applies to these three firms, Faceblock’s demand curve will be:
a. More elastic above the current price than below it.
b. Less elastic above the current price than below it.
c. Of equal elasticity both above and below the current price.
d. None of the above.
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