In a Dominant Firm Market, the Dominant Firm Chooses Its

Multiple Choice

In a dominant firm market, the dominant firm chooses its output level by:

A) setting price equal to marginal cost.
B) setting marginal revenue from the market demand curve equal to marginal cost.
C) setting marginal revenue from its residual demand curve equal to marginal cost.
D) identifying first a profit-maximizing price for its product subject to the price being charged by the competitive fringe.