Which of the following is true in the Stackelberg model?
A) The first firm produces less than its rival.
B) The first firm produces more than its rival.
C) Both firms produce the same quantity.
D) Both firms have a reaction curve.
B
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The short-run aggregate supply curve shows ________ while the long-run aggregate supply curve shows ________.
A. output; aggregate spending B. potential output; aggregate spending C. the current inflation rate; potential output D. potential output; the current inflation rate
Which of the following has occurred since the North American Free Trade Agreement (NAFTA) took affect in 1994?
a. U.S. trade with both Mexico and Canada has increased. b. Employment in the United States is now slightly lower than before the agreement. c. Employment in the United States is now substantially higher than before the agreement. d. Both a and b are true. e. Both a and c are true.
If you put $500 into a checking account, the immediate effect (do not consider the money multiplier which we will study in the next chapter) is:
a. M1 rises, M2 falls, and the monetary base remains the same. b. M1 falls, M2 falls, and the monetary base remains the same. c. M1 rises, M2 rises, and the monetary base remains the same. d. M1, M2, and the monetary base rise. e. M1, M2, and the monetary base remain the same.
Suppose that there are two laws proposed for eviction notices. Plan A requires landlords to give a renter 30 days to vacate an apartment once he has been served an eviction notice. Under Plan B, he has 60 days to vacate an apartment once he has been served an eviction notice. It follows that landlords will find
A) Plan A more expensive than Plan B. B) Plan B more expensive than Plan A. C) both plans to be equally expensive. D) none of the above