Which of the following statements is NOT a condition for a Stackelberg oligopoly?
A) The market is contestable.
B) Barriers to entry exist.
C) A single firm (the leader) selects an output before all other firms choose their outputs.
D) The firms produce either differentiated or homogeneous products.

Question

Quizplus · Accepted Answer

In a Stackelberg oligopoly, the defining characteristics include a leader firm setting output first, potential barriers to entry, and the production of either differentiated or homogeneous products. The contestability of the market is not a defining condition; rather, the focus is on the hierarchical decision-making process.

Which of the Following Statements Is NOT a Condition for a Stackelberg