What is a significant limitation of the kinked demand curve model in explaining oligopoly behavior?

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It presumes firms expect no reaction from competitors when they change prices.It does not clarify the initial process by which a firm determines its price and output levels.The model lacks empirical verifiability through real-world data.Pricing tactics in reality are less complex than those proposed by the model.

Explanation

The kinked demand curve model does not provide insight into how a firm initially selects its price and output, which is a major drawback. While it assumes competitor reactions to price changes, the key issue is its failure to explain the starting point of pricing decisions.