Price leadership
A) Typically results in greater instability in oligopolistic markets.
B) Is illegal under the Federal Trade Commission Act.
C) Is common in perfectly competitive markets.
D) Permits oligopolistic firms in a given market to coordinate marketwide price changes.

Question

Quizplus · Accepted Answer

Price leadership is a strategy in which one dominant firm in an oligopoly sets the price for the whole industry and others follow. It allows oligopolistic firms to coordinate their pricing strategies and maintain price stability in the market.

Price Leadership