Firms A and B are identical, produce identical products, and are the only firms in a market. Firm A's output is higher than Firm B's. This means that Firm B is the
A) Cartel leader.
B) Stackelberg leader.
C) Stackelberg follower.
D) Cournot leader.
Question 2
Monopolization of the labor market restricts output because
A) fewer workers offer their services.
B) the higher wage raises the firm's marginal cost.
C) monopolized workers are less productive.
D) a monopolized labor market means there is also a monopolized output market.
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