In the Stackelberg Model of Oligopoly,the Dominant Firm

question 15

Multiple Choice

In the Stackelberg model of oligopoly,the dominant firm:

• A)will equate marginal cost with the residual demand curve to maximize profits.
• B)faces a perfectly elastic demand curve.
• C)can maximize profits ignoring the actions of other firms in the industry.
• D)faces a marginal revenue curve that lies under the residual demand curve.

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Definitions:

Negotiability

The attribute of a financial instrument allowing it to be transferred or assigned from one party to another.

Requirements of Negotiability

Legal criteria that an instrument must meet to be considered negotiable, allowing it to be transferred from one party to another.

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by a bank and is insured by the Federal Deposit Insurance Corporation (FDIC).

Promissory Note

A written promise to pay a specified amount of money to a designated person or entity by a certain date or on demand.