We showed that, when demand is linear and marginal cost is constant, the Stackelberg leader produces the monopoly output while the Stackelberg follower produces half the monopoly output.If the leader and follower now enter a simultaneous quantity setting game, why can't the leader maintain the same equilibrium?

Question

Quizplus · Accepted Answer

The Answer of We showed that, when demand is linear and marginal cost is constant, the Stackelberg leader produces the monopoly output while the Stackelberg follower produces half the monopoly output.If the leader and follower now enter a simultaneous quantity setting game, why can't the leader maintain the same equilibrium?

We Showed That, When Demand Is Linear and Marginal Cost