In a Stackelberg oligopoly
A) the leader moves first, and the follower chooses its price in the second stage of the game.
B) the leader moves first, and the follower chooses its output in the second stage of the game.
C) both firms act simultaneously, but one chooses price and the other output level.
D) there is no Nash equilibrium.
B
You might also like to view...
The concept of opportunity cost in a fully employed economy with technology and resources held constant tells us that
A. expansion of output in one industry means expansion cannot occur in another industry. B. expansion of output in one industry means output in another industry must contract. C. output cannot be increased in any industry. D. output of all industries must contract until more resources are found.
If the Fed increases its open market purchases of government securities, it exerts a downward pressure on the interest rate. Such a phenomenon is usually referred to as the ___________________ effect
A) income B) substitution C) open market D) liquidity E) expectations
Suppose policy makers want to increase Y and increase NX. Which of the following policies would most likely achieve this?
A) an increase in government spending B) a real depreciation C) a reduction in taxes and an increase in the real exchange rate D) an increase in the real exchange rate
The marginal cost of producing 25 units of a public good is $100. There are two individuals in the society. Person A is willing to pay $40 for 25 units of the public good. If 25 units of the public good are provided, then Person B must be willing to pay
A. $0. B. $40. C. $60. D. $75.