In the dominant firm model, the fringe firms
A) are price takers.
B) maximize profit by equating average revenue and average cost.
C) determine their price and output before the dominant firm determines its price and output.
D) all of the above
E) none of the above
Question 2
Refer to Scenario 7.2. This production function is an example of which of the following types of production functions?
A) Cobb-Douglas
B) Leontief
C) Fixed proportions
D) Lagrange
E) none of the above
