In a price leadership oligopoly model,
a. a cartel of leading firms determines price and industry output.
b. the industry in consortium with the government determines price and output.
c. one firm is the price leader and all other firms follow.
d. the firms abandon a profit-maximizing goal.
e. firms do not operate where MR = MC.
c
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Indicate whether the statement is true or false
Which of the following does NOT lead to an increase in potential GDP?
A) labor force grows B) technological change takes place C) new machinery and equipment are installed D) aggregate expenditures increase