The Stackelberg Model Is More Appropriate Than the Cournot Model

question 112

Multiple Choice

The Stackelberg model is more appropriate than the Cournot model in situations where

• A) there are more than two firms.
• B) all firms enter the market simultaneously.
• C) one firm makes its output decision before the other.
• D) firms will be likely to collude.

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Definitions:

Internal Control

The processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.