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The strategy for the Stackelberg Leader is

The strategy for the Stackelberg Leader is:  

A. to sell a marginally higher quantity of goods than the rival

B. to sell at a marginally lower price than the rival

C. collusion

D. to take account of the effect of its own behaviour on the rival firm's quantity choice

32.The strategy for the shared monopoly is:  

A. to sell a marginally higher quantity of goods than the rival

B. to sell at a marginally lower price than the rival

C. collusion

D. to take account of the effect of its own behaviour on the rival firm's quantity choice

33.Which of the duopoly models has the highest overall combined profit level?  

A. The Cournot model

B. The Bertrand model

C. The Stackelberg Leader-Follower model

D. The shared monopoly model

34.The basic problem of a shared monopoly from the point of view of those involved is that:  

A. profits are lower than in the other oligopoly models

B. the shared output is too high for the high price to be maintained

C. collusive agreements are difficult to sustain

D. revenue is lower than in the other oligopoly models

35.Which of the duopoly models has the lowest overall combined profit level?  

A. The Cournot model

B. The Bertrand model

C. The Stackelberg Leader-Follower model

D. The shared monopoly model

36.Which of the following correctly orders total industry output?  

A. Shared Monopoly > Stackelberg > Cournot > Bertrand

B. Shared Monopoly > Cournot > Stackelberg > Bertrand

C. Shared Monopoly

D. Shared Monopoly

37.Which of the following is true?  

A. Total profits with shared monopoly equal those with Cournot competition

B. Total profits with Cournot competition exceed those with Stackelberg competition

C. Total profits with Stackelberg competition exceed those with Cournot competition

D. Total profits with Bertrand competition exceed those with Stackelberg competition

38.What of the following is not a difference between the Bertrand and Cournot model of competition?  

A. In Bertrand firms take the price of other firms as fixed

B. In Cournot firms take the quantity of other firms as fixed

C. In Bertrand firms can decide quantity after customers have ordered

D. In Cournot firms can decide quantity after customers have ordered

39.In the Chamberlin model at the long run profit maximizing price and output the firm is making:  

A. positive economic profit

B. negative economic profit

C. zero economic profit

D. iI is impossible to tell from the information given

40.Why is the firm demand curve downward sloping in the Chamberlin model?  

A. The firm demand curve is the market demand curve

B. The firms competitors sell a differentiated product

C. The demand curve should be horizontal and not downward sloping

D. The firm is a price taker

Dec 14 2019 View more View Less

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