How Does the Cournot Model of Oligopoly Differ from the Stackelberg

question 96

Multiple Choice

How does the Cournot model of oligopoly differ from the Stackelberg model?

• A)The Cournot model cannot be extended to include more than two firms unlike the Stackelberg model.
• B)The Cournot model explains the mutual interdependence of firms in an oligopoly market unlike the Stackelberg model.
• C)The equilibrium output in the Stackelberg model is relatively higher than the Cournot model.
• D)The Cournot model assumes that a single firm is the market leader while the Stackelberg model assumes no single firm has a large market share.