The kinked-demand curve for oligopolists assumes that rivals will match price cuts, but ignore price increases. match price cuts and price increases. neither match price cuts nor price increases. match price increases, but ignore price cuts. b. There is a gap in the oligopolist’s marginal-revenue curve because price drops abruptly. price rises abruptly. the cost of production changes abruptly. the slope of the demand curve changes abruptly. c. The kinked-demand curve explains price rigidity in oligopoly because firms expect any change in price will lower revenue and profits. firms agree to a given price. the firm's revenue will fall as the price falls. firms will not agree to a given price. d. Shortcomings of the kinked-demand model include a lack of explanation for how the initial price is set. the allowance for collusion. a lack of explanation for how the final price is set. the allowance for price leadership. Next Visit question mapQuestion 18 of 24 Total18 of 24 P