Which of the Following Correctly Explains the Dominant Firm Model

Multiple Choice

Which of the following correctly explains the dominant firm model of an oligopoly?

A) The firm that sets the lowest price gains the entire market share.
B) A single firm sets a price which is lower than the current market price and gains market share at the expense of the other firms.
C) A single firm sets the price in the market, which is taken as given by the other smaller firms.
D) Each firm in the market sets its price based on the reaction of the other firm.
E) The firms in the market collude and set prices in order to maximize their combined profits.