The strategy for the Stackelberg Leader is
A. to take account of the effect of its own behavior on the rival firm's quantity choice.
B. collusion.
C. to sell a marginally higher quantity of goods than the rival.
D. to sell at a marginally lower price than the rival.
Answer: A
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The costs of ensuring that the parties live up to the promises they made in bargaining are called
A) search costs. B) collectivization costs. C) negotiation costs. D) monitoring and enforcement costs.
The mangers of Healthy Snacks and Healthy Bars are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?
A) an announcement made by either firm regarding their future plans B) bargaining C) a focal point D) the Pareto criterion
For an economy that engages in international trade, GDP is divided into four components. Which of the following items is not one of those components?
a. consumption. b. national saving. c. government purchases. d. net exports.
Appreciation of the Canadian dollar will:
A. intensify an existing disequilibrium in Canada's balance of payments. B. make Canada's exports less expensive and its imports more expensive. C. make Canada's exports more expensive and its imports less expensive. D. make Canada's exports and imports both more expensive.