Use the following to answer questions below:
-Refer to the price leadership graph. The total quantity traded on the market at equilibrium is
A) 3 units.
B) 5 units.
C) 6 units.
D) None of the above is correct.

Question

Use the following to answer questions below: 
-Refer to the price leadership graph. The total quantity traded on the market at equilibrium is
A) 3 units. 
B) 5 units. 
C) 6 units. 
D) None of the above is correct.

Quizplus · Accepted Answer

In a price leadership model, the dominant firm sets the price, and the total quantity traded is determined by the intersection of the dominant firm's marginal cost and the market demand curve. In this scenario, the equilibrium quantity is 6 units.

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