In an industry where one firm with a high market share uses the reaction curves of other firms to set output,the _____ model is most applicable.
A)Cournot duopoly
B)perfectly competitive
C)Stackelberg
D)dominant firm

Question

Quizplus · Accepted Answer

The Stackelberg model is most applicable in this scenario because it involves a leader firm (with a high market share) setting its output first, taking into account the reaction of the follower firms in the market. This model captures the strategic advantage of the leading firm in setting its output level while anticipating the responses of its competitors.

In an Industry Where One Firm with a High Market