Question

In a Sweezy Oligopoly, a decrease in a firm's marginal cost generally leads to:_______.A) reduced output and a higher price.B) increased output and a lower price.C) higher output and a higher price.D) none of the statements associated with this question are true.

Answer 1

D) none of the statements associated with this question are true.

Explanation: Sweezy oligopoly which is also described as a kicked demand model helps to show how prices can be stable without any form of secret agreement between the small number of large Organisations which dorminates in an olygopolistic market.

An olygopolistic market is a market that is filled with a small number of large scale business Organisations.