The profits of the leader in a Stackelberg duopoly:
A) are greater than those of the follower.
B) equal those of the follower.
C) are less than those of the follower.
D) are greater than those of a Sweezy oligopolist.

Question

Quizplus · Accepted Answer

In a Stackelberg duopoly, the leader has the advantage of setting the quantity or price first, giving them a greater degree of market power. This leads to the leader having higher profits compared to the follower.

The Profits of the Leader in a Stackelberg Duopoly