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Compared to a Cournot Equilibrium,the _____ in a Stackelberg Equilibrium. A)price

Question 59
Multiple Choice

Compared to a Cournot equilibrium,the _____ in a Stackelberg equilibrium. A)price paid by the consumers is higher B)total industry output is higher C)profit made by the leader firm is lower D)output is closer to monopoly output

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Q 60
Given the same demand and cost conditions,_____ for a Stackelberg model as compared to a Cournot duopoly model. A)total output is lower and price is higher B)total output is higher and price is lower C)total output and price are both lower D)total output and price are both higher
Q 61
In an industry with a small number of equal-sized firms where none of the firms have superior knowledge,the _____ is most likely to apply. A)Cournot model of oligopoly B)perfectly competitive model C)dominant firm model of oligopoly D)Stackelberg model of oligopoly
Q 62
How does the Cournot model of oligopoly differ from the Stackelberg model? A)The Cournot model cannot be extended to include more than two firms unlike the Stackelberg model. B)The Cournot model explains the mutual interdependence of firms in an oligopoly market unlike the Stackelberg model. C)The equilibrium output in the Stackelberg model is relatively higher than the Cournot model. D)The Cournot model assumes that a single firm is the market leader while the Stackelberg model assumes no single firm has a large market share.
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