In the dominant firm model of oligopoly,the dominant firm maximizes profits by producing at the point where:

Question

Quizplus · Accepted Answer

In the dominant firm model of oligopoly, the dominant firm sets a quantity that it produces to maximize its profits. This quantity is chosen such that the marginal revenue generated by this output level is equal to the dominant firm's marginal cost of production. Therefore, the dominant firm produces where its marginal cost curve intersects its marginal revenue curve, which is equivalent to choice A.

In the Dominant Firm Model of Oligopoly,the Dominant Firm Maximizes