The Cournot and Stackelberg Models Are Similar, EXCEPT Cournot ________

question 42

Multiple Choice

The Cournot and Stackelberg models are similar, EXCEPT Cournot ________ and Stackelberg ________.

• A)sets price; sets output
• B)sets output; sets price
• C)is dynamic; is static
• D)is static; is dynamic

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Definitions:

Burden

The load, duty, responsibility, or stress placed upon an individual or entity.

Distribution of Income

The way in which a nation’s total earnings are divided among its population, or the way in which wealth is shared amongst individuals.

Evade

To avoid or escape from something or someone, often by using cunning or deceit.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied responds infinitely to changes in price.