In the Stackelberg Model of Oligopoly,the Leader Firm

question 83

Multiple Choice

In the Stackelberg model of oligopoly,the leader firm:

• A)sets the price in the market which the follower firms take as given.
• B)produces a larger quantity than follower firms and enhances its profits.
• C)chooses output and prices irrespective of the other firms in the market.
• D)produces a level of output which is equal to that of the follower firms.

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