Question

Price leadership occurs if:

A) smaller firms in an industry silently agree to charge the same price as the largest firm.
B) two or more firms in an industry agree to fix the price at a given level.
C) competition among a large number of small firms generates a stable market price.
D) competition among a large number of small firms generates similar but slightly different prices.

Answer 1

Price leadership takes place when there is only one dominant organization in the industry, which sets the price and others follow it. Sometimes, an agreement may be developed among organizations to assign a leadership role to one of them.

Step-by-step explanation:

Answer 2

Answer: D is the answer

Step-by-step explanation:

Hope that helped