Compared to a Cournot equilibrium,the _____ in a Stackelberg equilibrium.
A)price paid by the consumers is higher
B)total industry output is higher
C)profit made by the leader firm is lower
D)output is closer to monopoly output

Question

Quizplus · Accepted Answer

In a Stackelberg equilibrium, the leader firm commits to an output level before the follower firm decides its output. This typically results in a higher total industry output compared to a Cournot equilibrium, where firms choose their outputs simultaneously without knowing the other firm's decision.

Compared to a Cournot Equilibrium,the _____ in a Stackelberg Equilibrium