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.

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