Question

which of the following is not a feature of sweezy oligopoly? group of answer choices the firms produce homogeneous products. barriers to entry exist. there are few firms in the market serving many consumers. 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.

Answer 1

One feature of a sweezy oligopoly is that 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.

Step-by-step explanation:

An oligopoly is a market structure characterized by a small number of large firms dominating the industry. In the context of a sweezy oligopoly, one key feature is that 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. This behavior is based on the assumption that increasing prices will lead to a loss of market share, while reducing prices may not necessarily result in a significant increase in market share.

Some examples of oligopolistic industries include the auto industry, cable television, and commercial air travel. In these industries, there are usually significant barriers to entry, which limit the number of firms in the market.