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When Firm 1 Enjoys a First-Mover Advantage in a Stackelberg

Question 3

Multiple Choice

When firm 1 enjoys a first-mover advantage in a Stackelberg duopoly,it will produce:


A) more output and charge a lower price than firm 2.
B) more output and charge the same price as firm 2.
C) less output and charge the same price as firm 2.
D) less output and charge a higher price than firm 2.

Correct Answer:

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