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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 806 |
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Price leadership is a situation in which a market leader sets the price of a product or service, and competitors feel compelled to match that price. The occurrence of upward price leadership is usually only in response to increased industry costs or demand. Individual firms produce larger quantities, which, because of economies of scale in production, lead to a reduction in unit-production costs...
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The occurrence of upward price leadership is usually only in response to increased industry costs or demand. Individual firms produce larger quantities, which, because of economies of scale in production, lead to a reduction in unit-production costs. This means there is an improvement in productive efficiency...
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