The pricing strategy in which one firm is allowed to establish the market price for all firms in the market is called?

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02-08-2022
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The pricing strategy in which one firm is allowed to establish the market price for all firms in the market is called?

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anamta123ahmed anamta123ahmed · Answer 1 · 2022-08-09T17:02:49+02:00

The pricing strategy in which one firm is allowed to establish the market price for all firms in the market is called price leadership.

The strategy in which a firm is superior to all the other firms and decides the market price for all firms in the market is called the price leadership strategy. Price leadership occurs when a firm is able to exert enough influence in the market that it can efficiently decide the price of the products sold.

A monopoly implies specific ownership of a market by using a supplier of a product or a service for which there is no substitute. In this situation, the provider is able to decide the price of the product without worry of opposition from other sources or thru replacement products.

Monopoly power takes place while a company has a dominant function in the market. A pure monopoly is when one company has 100% of the market share. A company is probably considered to have monopoly energy with a greater than 25% market share.

Learn more about monopoly here brainly.com/question/7217942

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