All of the Following Are True for the Leader Firm

question 85

Multiple Choice

All of the following are true for the leader firm in a Stackelberg oligopoly with a linear demand and marginal cost except which one?

• A)The leader earns more profit than if it operated in a Chamberlin oligopoly.
• B)The leader has first- mover advantage.
• C)The leader earns more profit than the follower second firm.
• D)The leader takes the follower second firm's best- response production into consideration when determining its output level.