Author Question: Which of the following is true in the Stackelberg model? A) The first firm produces less than its ... (Read 75 times)

s.tung · **on:** Jul 1, 2018

Which of the following is true in the Stackelberg model?

A) The first firm produces less than its rival.
B) The first firm produces more than its rival.
C) Both firms produce the same quantity.
D) Both firms have a reaction curve.

Question 2

The income-consumption curve for Dana between Qa and Qb is given as: Qa = Qb. His budget constraint is given as: 120 = Qa + 4Qb How much Qa will Dana consume to maximize utility?

A) 0
B) 24
C) 30
D) 60
E) More information is needed to answer this question.