A prediction from the kinked demand curve model of oligopoly is that, for an individual firm, small changes in

A) demand will lead to changes in price or output.
B) marginal revenue will lead to changes in price and output.
C) marginal cost will lead to changes in price and output.
D) marginal cost will not lead to changes in price or output.

Kinked Demand Curve Model

A model in economics suggesting that prices for certain goods are inflexible or sticky downward because firms fear that price decreases will be matched by competitors, but price increases may not be.

Marginal Cost

The charge for producing one extra unit of a product or service.

Price Changes

Variations in the selling price of goods and services over time due to factors like supply and demand, inflation, or external economic conditions.