Price leadership

a. is rather uncommon today.

b. is a pricing arrangement in which one firm in an oligopoly agrees to act as a cartel manager and set a price that will maximize the profits of all the firms in the oligopoly market.

c. would not be useful to a dominant firm if it could eliminate all its rivals through a price war.

d. none of the above.

d. none of the above.

Explanation of the other answer options:

The price leadership is not uncommon today. There are many examples like Amazon, McDonald which are sellers of the international market due to the lower price.

The price leadership is the nature of the market with one firm dominance acquired due to the lower prices. The firm takes lead here not through the pricing agreement, but due to lower prices. Any firm would not think of gaining maximum profit for all firms if it has a low price benefit.

Similarly, it will be an oligopoly market. If the dominant firm has eliminated its rivals, then the lower price would not be useful. Lower price dominance is only useful if the firm has near-its-price rivals. No rivals firm will be earning good profit through higher market share and thus, gains monopoly control.