A Dominant Firm's Residual Demand Curve Is

question 11

Multiple Choice

A dominant firm's residual demand curve is

• A) the horizontal difference between the market demand curve and the supply curve of the fringe firms.
• B) the vertical difference between the market demand curve and the supply curve of the fringe firms.
• C) the demand curve left for the fringe firms after the dominant firm has determined an output level.
• D) None of the above.

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