The demand curve facing the dominant firm in the price leadership model is derived by subtracting the...?

a) amount supplied by the smaller firms from market supply
b) amount demaned by customers of the smaller firms from market supply
c) dominant firm's marginal cost curve from the industry's supply curve
d) amount supplied by the smaller firms from market demand

i think it's A.

Answer:
Yes. You are right. Provided the dominanr firm is overwhelmingly dominant and the competititors are a small portion of the market operating locally without any brand loyalty.

The answers post by the user, for information only, FunQA.com does not guarantee the right.



More Questions and Answers:
  • Is the Lower class slowly over populating the middle class?
  • How petrol effect on car when price petrol increases ?
  • Price floors?
  • What is the significance of return to scale in mass production?
  • Euro currency. More good or more harm?
  • Consider a firm that produce wheat with land and labor inputs discuss and contrast diminishing returns and dec
  • How do the under developed coun tries can get out of the vicious cycle of poverty over night?
  • Can you think of any real-world examples of monopsonies? What are the disadvantages of monopsonies?
  • Economic dilemma from school?