The ability of a firm to be a price leader whose pricing decisions are emulated by other companies is determined solely by its market share.

Question

Quizplus · Accepted Answer

The ability to be a price leader is not solely determined by market share. Other factors such as brand recognition, product differentiation, and industry regulations can also play a role in a firm's ability to set prices that are emulated by others.

The Ability of a Firm to Be a Price Leader