In the Stackelberg Model

question 14

Multiple Choice

In the Stackelberg model,

• A)each firm takes the quantities produced by its rivals as given.
• B)each firm takes the prices charged by its rivals as given.
• C)one firm plays a leadership role and its rivals merely react to the leader's quantity.
• D)prices are higher and quantities are slightly less than we would see if the firms colluded to achieve the monopoly outcome.

---

Definitions:

Voice

The expression or ability to express thoughts and feelings by articulating sounds or in written form.

Informal Communication

The exchange of information and ideas in an unofficial or casual manner, often outside of formal communication channels.

Congruence

The state of agreement or harmony between individuals, actions, values, or systems, often contributing to effective functioning and satisfaction.

Perceived Fairness

The belief or understanding by individuals that the actions, decisions, or policies they are subject to are just and equitable.