Figure 13-1 shows the Stackelberg model of a duopoly.Both firms face constant marginal costs equal to OJ and the market demand curve is AD.The Stackelberg firm produces an output of OF and OF is equal to FL. 
-Refer to Figure 13-1.The Stackelberg firm's residual demand curve is given by:
Definitions:
Purchase Obligations
Commitments made by a company to buy goods or services under specified terms in the future.
Product or Service Restrictions
refer to limitations or rules placed on the sale or provision of certain goods or services, often for safety, legal, or ethical reasons.
Franchise Contracts
Legal agreements granting someone the rights to operate a business under a franchisor's brand and business model.
Indefinitely
For an unspecified or unlimited period of time.
Q2: In determining who bears the burden of
Q6: Which of the following correctly describes economic
Q8: If the marginal product of labor is
Q13: Which of the following would be a
Q58: Which of the following statements correctly identifies
Q70: Suppose ABC Concrete is the dominant firm
Q76: Firms in an industry are unlikely to
Q77: Refer to Table 11-2.At the profit-maximizing output,the
Q84: Which of the following is true of
Q88: Refer to Figure 9-3.At the output level