Which of the following is not a feature of Sweezy oligopoly?
A)There are a few firms in the market serving many consumers.
B)The firms produce differentiated products.
C)Each firm believes that rivals will cut their prices in response to a price reduction, but will not raise their prices in response to a price increase.
D)Free entry and exit occurs in the market.

Question

Quizplus · Accepted Answer

Sweezy oligopoly assumes that free entry and exit does not occur in the market, as barriers to entry make it difficult for new firms to enter and compete with established firms.

Which of the Following Is Not a Feature of Sweezy