The market for an industrial chemical has a single dominant rm and a competitive fringe. The dominant rm ads as a price leader. setting a price for the chemical; and each rm in the fringe acts as a price taker. In other words.the leader selects a price, and the foi lowers take that price as given and choose their quantities in response. The leade r corn mits to prod uoe whatever quantity is demanded at the selected price. after the competitive fringe has sold its chosen out put. Market demand (Q0) and co mpetitive fringe su [WY (Or) are as follows: On = 140 - 32F Q; = 60 + 8P where quantities are in thousands of gallons and price is in dollars per gallon. Marginal cost for the price leader is constant at MC = $0.?5 per gallon. Let QL denote the quantity sold by the price leader. he profit-maximizing price for the price leader is (round to three decimal places) none of the other choices is correct. P = MC = 0.75 P = 1.375 P = 1 P = 1.25