Problem
1. What is the role played by the competitive fringe in the dominant firm model of oligopoly? Why does an increase in the size of the fringe result in a reduction in the dominant firm's profit-maximizing price?
2. What is the difference between vertical product differentiation and horizontal product differentiation?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.