All of the following are true for the leader firm in a Stackelberg oligopoly with a linear demand and marginal cost except which one?
A) The leader earns more profit than if it operated in a Chamberlin oligopoly.
B) The leader has first- mover advantage.
C) The leader earns more profit than the follower second firm.
D) The leader takes the follower second firm's best- response production into consideration when determining its output level.
Correct Answer:
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