How does the leader's behavior in the quantity-leadership (Stackelberg) game compare to that in the analogous price-leadership game?
a. It behaves as a "puppy dog" in both.
b. It behaves as a "top dog" in the quantity leadership game but a "puppy dog" in the price leadership game.
c. It behaves as a "top dog" in the quantity leadership game but a "puppy dog" in the price leadership game.
d. It behaves as a "top dog" in both.
b
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The above table gives Sue's marginal utility schedules for sub sandwiches and Mountain Dew, the only products Sue consumes. Suppose the price of a sub sandwich is $4 each and the price of a Mountain Dew is $2 each. Sue's income is $12
If Sue is at a consumer equilibrium, she eats ________ sub sandwich(es) and drinks ________ Mountain Dews. A) 0; 6 B) 1; 4 C) 2; 2 D) 3; 0
Suppose the saving rate is greater than the golden rule saving rate (sG). First, explain what must happen to the saving rate in order to increase steady state consumption. Second, what are the advantages and disadvantages of this policy to increase steady state consumption
What will be an ideal response?