In a Price Leadership Oligopoly Model

Multiple Choice

In a price leadership oligopoly model,

A) a cartel of leading firms determines price and industry output
B) the leading firm colludes on price with each of the other firms and in this way has primary decision-making powers over price
C) one firm is the price leader and all other firms in the industry follow
D) the firm that leads abandons the profit-maximizing goal
E) the leader firm produces where MR = MC, and all others produce where P = ATC