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.

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Definitions:

Secondary Extinctions

Refers to the loss of species due to the extinction of another, indicating a dependency between species within an ecosystem.

Species Diversity

The variety and abundance of different species within a particular region, contributing to the overall biodiversity and health of ecosystems.

Community

Assemblage of species interacting with one another within the same environment.

Immediate Collapse

A rapid fall or failure in structure, function, or health, occurring suddenly and often without warning, in various contexts such as medical or structural engineering.