Question

1. What is the price leadership model of Oligopoly pricing and what are its tactics?

2. In monopolistically competitive markets, neither allocative nor productive efficiency is realized" explain.

please make response at least 5 sentences.

Answer 1

1)

Here a predominant firm sets costs. Different firms which are adherents pursue the value chief. In this way there is casual understanding which guarantees preferred benefits over unadulterated challenge

2)

There is no allocative productivity as orice>MC. There us no gainful effeciency as yield is delivered at a level where ATC isn't least. Therefore such market structure prompts wastefulness

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