Use the Following Statements to Answer This Question: I

question 47

Multiple Choice

Use the following statements to answer this question: I.Under the dominant firm model,the dominant firm effectively acts like a monopolist who is facing the excess market demand that cannot be supplied by the fringe firms.
II.If the fringe supply curve shifts leftward in the dominant firm model,then the resulting market equilibrium price is __________ and the dominant firm's quantity __________.

• A)lower,decreases
• B)lower,increases
• C)higher,decreases
• D)higher,increases

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Definitions:

Rights of Assignee

Legal entitlements transferred to an assignee, allowing them to claim the benefits under the contract or agreement from the assignor.

Business Loan

A loan specifically intended for business purposes, where funds are lent to a business entity in exchange for future repayment of the loan principal amount along with interest or other finance charges.

Investor

An individual or entity that allocates resources with the expectation of achieving a financial return.

Creditor

An individual or entity that is owed money or has a claim to the assets of a debtor.