Price leadership
A)Typically results in greater instability in oligopolistic markets.
B)Results in a more competitive market.
C)Is common in perfectly competitive markets.
D)Permits oligopolistic firms in a given market to coordinate market wide price changes.

Question

Quizplus · Accepted Answer

Price leadership allows oligopolistic firms to coordinate and make market-wide price changes, leading to a more stable market. This is because one dominant firm sets the price, and other firms follow their lead, ensuring that prices remain relatively consistent.

Price Leadership