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In the price leadership theory, at a price of R4 per unit the fringe firms supply the entire market. At a price of R3, the (market) quantity demanded is 1,000 units, and the quantity supplied by fringe firms is 450. Given this, which of the following quantity-price combinations is represented by a point on the dominant firm's demand curve?

Microeconomics, Economics

  • Category:- Microeconomics
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