With regards the Kinked demand curve theory given by Paul Sweezy, answer the following:

(i) The demand curve facing an oligopolist has a kink at the level of the prevailing price. Discuss. 

(ii) Why does the slope of the demand curve vary on the both sides of the kink? Give reason

In the context of oligopoly, the kinked demand curve theory, proposed by Paul Sweezy, explains the behavior of firms operating in an oligopolistic market structure, where a few firms dominate the market. The theory suggests that the demand curve facing an oligopolist is not smooth but has a kink at the level of the prevailing price. This kink arises due to the asymmetric response of competitors to price changes by the oligopolist.

(i) The demand curve facing an oligopolist has a kink at the level of the prevailing price because of the unique market characteristics that oligopolists face. In an oligopoly, firms are interdependent, meaning the actions of ___ ______ _______ ________ ______ ______ _______.
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