Suppose that an industry is characterized by a few firms and price leadership.We would expect that:

A) price would equal marginal cost.
B) price would equal average total cost.
C) price would exceed both marginal cost and average total cost.
D) marginal revenue would exceed marginal cost.

In an industry with a few firms and price leadership, the dominant firm sets the price and the other firms follow it. The dominant firm will set a price that is above both marginal cost and average total cost in order to maximize profits. They can do this because they have market power and can control the price. Therefore, we would expect that the price would exceed both marginal cost and average total cost.