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:

Trade Secrets

Confidential business information that provides an enterprise with a competitive edge, and is protected from public disclosure.

Time Lag

The delay between the initiation of an action or policy and the observed effects or outcomes of that action.

Patentable

Qualifies for intellectual property protection because it is new, useful, and non-obvious.

Expected-rate-of-return

The anticipated return on an investment, calculated based on historical data, market trends, or other analytical methods.