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With the Price Leadership Strategy

Question 29

Multiple Choice

With the price leadership strategy:


A) the many small firms set the market price, and the large firm must follow their behavior.
B) the large firm sets the market price, and the many small firms must follow its behavior.
C) firms collude to determine optimal price and output for the industry.
D) firms determine price and output independent of one another.
E) firms are not profit maximizers.

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