The profitability of the second mover in a Stackelberg model is
A) guaranteed to be negative.
B) smaller than that of the first mover.
C) greater than that of the first mover.
D) greater than the Cournot profits.
B
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The market for a competitive price-taker market clears at a price of $3, and the minimum average cost for all firms is $2.50 . In the long run, we would expect an increase in
a. each firm's output. b. the number of firms. c. each firm's profit. d. each firm's average cost.
According to the analysis in your textbook, the school voucher program would
A. decrease the level of spending on education. B. increase the level of spending on education. C. force some people to leave the public school system. D. leave the level of spending on education the same.
Holding the money deposits of businesses and households and making loans to the public are the basic functions of:
A. district banks of the Federal Reserve System. B. the Federal Deposit Insurance Corporation and the Federal Savings and Loan Insurance Corporation. C. the Open Market Committee and the Board of Governors. D. commercial banks and thrift institutions.
Which of the following is true?
i. Comparative advantage drives international trade. ii. Compared to a no-trade situation, imports make domestic producers better off. iii. Tariffs lower the domestic price of imported goods. A) Only i B) Only ii C) Only iii D) i and ii E) i and iii