In the ________, one firm sets its output first, and then a second firm, after observing the first firm's output, makes its output decision.
A) Cournot model
B) model of monopolistic competition
C) Bertrand model
D) kinked-demand model
E) none of the above

Question

Quizplus · Accepted Answer

The correct answer is not listed among the options provided. The description given matches the Stackelberg model of competition, where one firm, the leader, sets its output first, and the follower firm then decides its output after observing the leader's decision. This model is not mentioned in the options.

In the ________, One Firm Sets Its Output First, and Then