The kinked demand-curve theory states that oligopolists have a greater tendency to tivals' price increases.The kinked demand-curve theory states that oligopolists have a greater tendency to rivals" price cuts but will rivals price increases. ylargelylenore. wispond aneressively toThe followinggraph depicts the demand curve, marginal revenue curve, and marginal cost curve that an oligopolist faces. The firm is currently charging the cartel price, P : and producing the cartel quantity, Q.Suppose input prices fall and marginal cost decreases from M1C1 to M2. Based on this event alone, the firm depicted in the figure above will Choose one: A increase price above P. B. decrease price below P. C. not change the price. D. increase quantity above Q : E. decrease quantity lelow Q:.