When Firm 1 Enjoys a First-Mover Advantage in a Stackelberg

question 67

Multiple Choice

When firm 1 enjoys a first-mover advantage in a Stackelberg duopoly,it will produce:

• A) more output and charge a lower price than firm 2.
• B) more output and charge the same price as firm 2.
• C) less output and charge the same price as firm 2.
• D) less output and charge a higher price than firm 2.

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