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Samantha Floyd
on Dec 04, 2024

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If the fringe supply curve shifts leftward in the dominant firm model, then the resulting market equilibrium price is ________ and the dominant firm's quantity ________.

A) lower; decreases
B) lower; increases
C) higher; decreases
D) higher; increases

Dominant Firm

A company that has a large market share in an industry, allowing it to set prices or conditions under which other firms operate.

Market Equilibrium

A situation where the supply of a good or service is equal to the demand for it, resulting in stable prices.

  • Determine the price and output levels that maximize profits across different cost and demand situations.
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Jasmine FelicianoDec 05, 2024
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