A dominant firm's demand curve is______the market demand curve at all points where the competitive fringe's production is _______.

Question

Quizplus · Accepted Answer

A dominant firm's demand curve is identical to the market demand curve at all points where the competitive fringe's production is equal to zero. This is because, in the absence of production from the competitive fringe, the dominant firm faces the entire market demand alone.

A Dominant Firm's Demand Curve Is______the Market Demand Curve at All