--%>
Assignment Help - homework help

Explain the pricing under price leadership

Explain the pricing under price leadership.

E

Expert

Verified

The price leadership implies the leading firm finds out the price and others follow this. All the firms in the industry adjusts, the price fixed through the price leader.

The large firm that that fixes the price is termed as the price maker and the firms, who follow this, are termed as price –takers. Four types of the price leadership are there. These are:

1. Dominant price leadership: Under this situation, there exist many minute firms and one large firm and the huge firm fix the price and the small firms under the market accept such price.

2. Barometric Price Leadership: In this situation one reputed and experienced firm’ price fixes and others may follow this.

3. Aggressive Price Leadership: In this market condition, one dominating firm fixes the price as well as they compel all others within the industry to follow the price.

4. Effective Price Leadership: In this condition, there is small number of firms within the industry.

   Related Questions in Managerial Economics

  • Q : Illustrates definition and meaning of

    Illustrates the definition and meaning of managerial economics?

    		•
  • Q : Higher rates of unemployment Higher

    Higher rates of unemployment in between nurses, clerical workers and teachers are a likely consequence when a government policy is adopted based on the doctrine of: (1) comparable worth. (2) equal marginal productivity per dollar. (3) equal pay for eq

    		•
  • Q : Illustrates the role of cost in pricing

    Illustrates the role of cost in pricing?

    		•
  • Q : Illustration of specific training The

    The knowledge gained while an Apple employee learns a specialized technique on an iPod assembly line is an illustration of: (w) comparative technological advantage. (x) specific training. (y) on-the-job leveraging. (z) general training.

    Q : Equilibrium of the consumers of the two

    identify two goods consumed by the majority of the neighborhood communities. Qn. establish the equilibrium of the consumers of the two goods

    		•
  • Q : Define the term full cost concept

    Define the term full cost concept.

    		•
  • Q : Illustrate signalling by example If

    If interviewing for a job like a bill collector for a loan shark, Bob mentions his degree into martial arts by the Hard Knox Reformatory, his summer internship along with BreakUrLegs, Inc., as well as his family links. Bob’s casual discussion of such credentials

    		•
  • Q : Explain about the control of business

    Explain about the control of business cycle.

    		•
  • Q : Resources and Products Flow Model I

    I have a problem in economics on Resources and Products Flow Model. Please help me in the following question. The eventual owners of all resources and products in the society are as follows: (i) households. (ii) Firms. (iii) The tax-paying public. (iv

    		•
  • Q : Labor-Leisure Trade-offs The relative

    The relative price of leisure rises while there are increases within the: (w) supply of labor. (x) wage rate. (y) cost of living. (z) marginal tax rate on income. Can someone explain/help me with best solution abou

    		•