The Stackelberg model of oligopoly assumes that each of the two producers will choose prices instead of quantities and neither will change price in response to the other's decision.

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The Stackelberg model of oligopoly assumes that firms choose quantities, not prices, and it involves a leader-follower dynamic where the follower may adjust its output based on the leader's output decision, not prices that remain fixed regardless of the competitor's actions.

The Stackelberg Model of Oligopoly Assumes That Each of the Two