Which of the Following Is an Example of Stackelberg Competition

question 138

Multiple Choice

Which of the following is an example of Stackelberg competition?

• A) Firestone offers rebates to keep its tire prices below Goodyear's.
• B) A price war between American Airlines and United Airlines leads both airlines to set ticket prices equal to marginal cost.
• C) Natura Pet Products introduced the first grain-free dog food; eventually, other dog food companies entered this market but had to limit their production plans, given Natura Pet Products' sizable market share.
• D) GlaxoSmithKline and Pfizer compete in the HIV drug market by annually announcing their production quotas during the second week of January.

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Definitions:

Isoelectronic

Describing atoms, ions, or molecules that have the same number of electrons and thus similar electron configurations.

Octet Rule

A chemical rule of thumb that reflects the observation that atoms of main-group elements tend to bond in such a way that each atom has eight electrons in its valence shell.

Lewis Dot Structure

A diagram that represents the valence electrons of atoms within a molecule, showing the bonding between atoms as well as lone pairs of electrons.

He

Helium, a colorless, odorless, tasteless, non-toxic, inert, monatomic gas that heads the noble gas series in the periodic table.