The pricing strategy in which one firm is allowed to establish the market price for all firms in the market is called
A)Price discrimination.
B)Price leadership.
C)The profit-maximizing rule.
D)Marginal cost pricing.

Question

Quizplus · Accepted Answer

In price leadership, one firm (usually the largest or dominant firm in the market) sets the price and other firms in the market follow suit. This strategy can be beneficial for the leading firm as it allows them to maintain their market share and profitability, but may be detrimental to other firms who may not be able to compete at the same level.

The Pricing Strategy in Which One Firm Is Allowed to Establish