Suppose an oligopoly has a dominant firm that sets the price for the entire industry. In this situation, the oligopoly has:

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When a dominant firm in an oligopoly sets the price for the entire industry, it is known as price leadership. While the other firms in the industry may still technically compete on price, they generally follow the lead of the dominant firm and adjust their prices accordingly. This results in a more stable market and less price volatility compared to other oligopoly structures. Nonprice competition, a kinked demand curve, and a cartel could also be features of an oligopoly, but they are not necessarily present in this specific scenario.

Suppose an Oligopoly Has a Dominant Firm That Sets the Price