Facepalm’s demand curve will be more elastic above the current price than below it if kinked-demand theory applies to the said firm, Instarant, and Snaphat.
If these rival firms are in an oligopoly industry, it means the market is dominated by a few large producers of a homogeneous or differentiated products. Take note that oligopolies are comprised of few large producers only.
There is no oligopoly theory. However, oligopolistic markets where each company sells a differentiated good or service can also be subject to the kinked-demand theory.
The kinked-demand theory predicts that each company will deal with two demand curves for its product on the market. The firm must contend with the comparatively elastic market demand curve at high prices. The high level of interdependence between the businesses that make up an oligopoly is demonstrated by this theory, too.
Know more about the demand curve of an individual firm that will be kinked if in rival oligopolies here: https://brainly.com/question/28197535
#SPJ4
