Suppose an Oligopoly Has a Dominant Firm That Sets the Price

question 36

Multiple Choice

Suppose an oligopoly has a dominant firm that sets the price for the entire industry. In this situation, the oligopoly has:

• A) non-price competition.
• B) a kinked demand curve.
• C) price leadership with competitive fringes.
• D) a cartel.

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Definitions:

Control Affects

Involves the impacts that control mechanisms have on the behavior and performance of organizations or systems.

Inputs

resources used in the process of creating goods or services, including time, labor, capital, and materials.

Information And Communication Outputs

the results or products of information and communication processes, including data reports, multimedia presentations, and other forms of disseminated knowledge.

Day-to-day Operation

The regular, routine activities carried out by a business to ensure its smooth functioning and success.