Dominant price leadership exists when
A) one firm drives the others out of the market.
B) the dominant firm decides how much each of its competitors can sell.
C) the dominant firm establishes the price at the quantity where its MR = MC, and permits all other firms to sell all they want to sell at that price.
D) the dominant firm charges the lowest price in the industry.
C
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Which of the following is a statement of positive economics? a. Unemployment is a more severe problem in societies than inflation
b. Our current unemployment rate is a serious problem. c. If the overall unemployment rate is 6 percent, teenage unemployment rates will exceed 12 percent. d. An unemployment rate of 4 percent would be too low.
Nurses who work in hospitals often are required to work on weekends, whereas nurses who work in doctors' offices generally only work Monday through Friday. Hospital nurses who must work on weekends are usually paid more than nurses working in doctors' offices for the same work even if they have the same skills and education. This difference in pay is attributed to
a. an efficiency wage. b. compensating differential. c. differences in the marginal product of labor. d. differences in human capital.