A form of oligopoly in which a dominant firm sets the price and all smaller firms in the industry follow the dominant firm's pricing policy is called
A) the Cournot model.
B) the contestable markets model.
C) a cartel.
D) the price-leadership model.

Question

Quizplus · Accepted Answer

The price-leadership model describes a form of oligopoly where a dominant firm sets the price for the industry, and the smaller firms follow this pricing policy, rather than engaging in price competition.

A Form of Oligopoly in Which a Dominant Firm Sets