Which statement concerning the kinked demand curve model of oligopoly is false?

A) It addresses the question of price "stickiness."
B) It assumes when one oligopolist raises the price, all others will follow.
C) The portion of the demand curve above the "kink" is more elastic than the portion below.
D) The firm's marginal costs can sometimes shift without changing the profit-maximizing price and output.

Kinked Demand Curve

A theory in economics which suggests that price increases will not be followed by competitors in an oligopolistic market, leading to a situation where a firm faces a steeper demand curve for price increases and a more elastic demand curve for price decreases.

Price Stickiness

A situation in markets where prices of goods do not adjust immediately to changes in supply and demand conditions.

Profit-Maximizing Price

The price at which a firm can sell its product to maximize its profit, determined by various factors including demand, cost of production, and market competition.