Question

In a Stackelberg Duopoly model where Firm 1 is the leader and Firm 2 is the follower with identical marginal costs (

  • C , the leader's equilibrium quantity (Q_1) compared to the Cournot equilibrium quantity (Q_c) is:
A Q_1 < Q_c
B Q_1 = Q_c
C Q_1 > Q_c
D Q_1 = 2Q_c
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