Author Question: The Stackelberg outcome differs from the Cournot equilibrium because: a. the games involve ... (Read 80 times)

ts19998 · **on:** Jul 1, 2018

The Stackelberg outcome differs from the Cournot equilibrium because:
a. the games involve different strategic variables.
b. the first mover can commit to an output off its best-response function.
c. quantity supplied is not equal to quantity demanded at the prevailing price.
d. it's not a perfectly competitive outcome.

Question 2

An example of moral hazard is
a. workers shirking when the boss is not looking
b. health care insured dieting and exercising
c. drivers of safer cars turning their phones off before driving
d. borrowers investing their loan proceeds exactly as the bank requires