In the case of price leadership by the dominant firm all the firms in the purely oligopolistic industry will produce their best level of output

Related MCQs

• Assertion (A) Many oligopolistic industries exhibit an appreciable degree of Price rigidity or stabilityReason (R) Oligopolists face a demand curve that is highly elastic for price increases and less elastic for price reductions
• Increase or decrease in the level of production by a monopolistically competitive firm have ------- impact on price and output decisions of other firms
• Free entry into monopolistically competitive market ensures that all firms will produce at the lowest point of LAC
• At the optimum short-run level of output, the firm will be
• The best or optimum level of output for the pure monopolist
• The best level of output for the monopolist is
• Under monopolistic competition, an increase in the number of firms producing close substitutes will make the demand curve of each firm
• Price leadership can be in the form of
• When the perfectly competitive firm and industry are both in long run equilibrium
• It is assumed that the cost curves of all the firms in the monopolistic competition are