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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Definitions:

Unequal Distribution of Wealth

A situation where economic resources and wealth are not shared equally among individuals or groups within a society, leading to disparities in living standards and opportunities.

Government Aid

Financial or other assistance provided by a government to individuals, organizations, or other governments in need, which may include subsidies, grants, or disaster relief.

Unemployed

The condition of not having employment while being ready to work.

Mass Unemployment

A significant and widespread condition in which a large percentage of the eligible workforce is unable to find employment.