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question 89

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Use the following figure to answer the question : 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. Use the following figure to answer the question : 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 difference between the total industry output produced under a perfect competition model and a Stackelberg model is represented by the distance _____. A) KF B) KL C) LE D) FL
-Refer to Figure 13-1.The difference between the total industry output produced under a perfect competition model and a Stackelberg model is represented by the distance _____.


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