The dominant-firm price leadership model describes a market structure in which a dominant firm is the price maker and all other firms are price takers.

Question

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In the dominant-firm price leadership model, there is one large firm that has the biggest market share and sets the price for the industry, while the smaller firms follow its lead and accept the price set by the dominant firm, acting as price takers.

The Dominant-Firm Price Leadership Model Describes a Market Structure in Which