What Is One Difference Between the Cournot and Stackelberg Models

question 81

Multiple Choice

What is one difference between the Cournot and Stackelberg models?

• A) In Cournot, both firms make output decisions simultaneously, and in Stackelberg, one firm sets its output level first.
• B) In Stackelberg, both firms make output decisions simultaneously, and in Cournot, one firm sets its output level first.
• C) In Cournot, a firm has the opportunity to react to its rival.
• D) Profits are zero in Cournot and positive in Stackelberg.

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