Which of the Following Is NOT a Feature of Sweezy

question 117

Multiple Choice

Which of the following is NOT a feature of Sweezy oligopoly?

• A) There are few firms in the market serving many consumers.
• B) The firms produce homogeneous 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) Barriers to entry exist.

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Definitions:

Demand Equation

A mathematical expression that relates the quantity demanded of a good to its price and other factors influencing demand, typically in the form of Qd = f(P, ...), where Qd is quantity demanded, P is price, and ... represents other determinants.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market equilibrium price.

Commodity X

A placeholder term typically used to represent any generic good or service in economic models and discussions.

Demand Equation

A mathematical representation of the relationship between the demand for a good and its price, often also considering other determinants of demand.