The price leadership strategy is most appropriate when a market is:
A) perfectly competitive.
B) monopolistic.
C) monopolistic competitive.
D) oligopolistic.
E) all of the above.

Question

Quizplus · Accepted Answer

The price leadership strategy is most appropriate when a market is oligopolistic, which means there are only a few dominant firms in the market. In this scenario, the price leader sets the price and other firms follow it to avoid price-based competition, which can lead to lower profits for everyone involved. In perfectly competitive, monopolistic, or monopolistically competitive markets, there are many firms, and price leadership is difficult to maintain.

The Price Leadership Strategy Is Most Appropriate When a Market