The Stackelberg outcome differs from the Cournot equilibrium ...

[ts19998]

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

[Ddddd]

Answer to Question 1

b

Answer to Question 2

a

[ts19998]

YES! Correct, THANKS for helping me on my review

[gcook]

Thanks for the timely response, appreciate it