The oligopoly model that is most appropriate when one large firm usually takes the lead in setting price is the ________ model.
A) Cournot
B) Stackelberg
C) game theory
D) Prisoners' Dilemma

Question

Quizplus · Accepted Answer

The Stackelberg model is appropriate when one large firm takes the lead in setting price. In this model, the leader firm sets its output level first, taking into account the potential reaction of the follower firms, who then adjust their output accordingly.

The Oligopoly Model That Is Most Appropriate When One Large