Regarding Price Leadership,which of the Following Is NOT True? ​

question 13

Multiple Choice

Regarding price leadership,which of the following is NOT true? ​

• A) ​one firm may establish itself as the dominant firm
• B) ​the dominant firm is frequently a larger size or has lower cost structure
• C) ​Price leadership is a model of price-output determination
• D) ​Once established,a barometric price leader will not change
• E) ​price leadership is a pricing strategy followed in many oligopolistic industries

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Definitions:

Consumption

The use of goods and services by households, referring to the action and effect of consuming products.

Nonlabor Income

Income received from sources other than employment, such as investments, pensions, or inheritance, which influences consumer behavior and economic decisions.

Nonlabor Income

Earnings derived from sources other than direct employment, including investments, interest, and property income.

Wage Rate

The fixed amount of compensation or payment made to an employee by an employer in return for work performed, typically expressed on an hourly, daily, or piecework basis.