According to William Shepherd's examination of competitive trends in the U.S.economy, a dominant firm
A)is a pure monopoly
B)is a firm with over half the market share and no close rival
C)is one of four firms that together supply more than 60 percent of the market
D)is a single firm that controls the entire market and can block entry
E)is one of four firms that work together to block entry into the market

Question

Quizplus · Accepted Answer

According to William Shepherd, a dominant firm is a firm that has over half of the market share and no close rival. This means that while there may be other firms in the market, the dominant firm has a significant advantage in terms of size and market power.

According to William Shepherd's Examination of Competitive Trends in the U.S.economy