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 there is a dominant firm that sets the price for the entire industry, it is known as price leadership. This firm is able to influence the pricing decisions of other firms in the oligopoly, leading to a certain level of price coordination. However, this does not necessarily lead to complete collusion or a formal cartel agreement. Non-price competition refers to competition based on factors other than price, such as quality or advertising. A kinked demand curve is a theoretical concept that suggests that an oligopoly firm will face a relatively elastic demand curve above a certain price point and a relatively inelastic demand curve below that point, creating a “kink” in the demand curve. A monopoly refers to a situation where there is only one firm in a market.

Suppose an Oligopoly Has a Dominant Firm That Sets the Price