The Cournot and Stackelberg models are similar, EXCEPT Cournot ________ and Stackelberg ________

Britain's decision to exit the ERM in September 1992 had what effect?

A) Lower interest rates and a depreciated exchange rate caused the British economy to expand. B) It subjected Britain to a ruling by the European Courts of Justice. C) It caused the system to collapse. D) It had no effect on Britain's economy.

What happens to the market outcome if cartel members cheat on the collusive agreement?

A) Price declines, but firm-level quantities remain the same because the firms act like price takers B) Price and quantity revert to the single-seller monopoly equilibrium outcome C) Other firms raise prices so that the average market price remains unchanged D) Price declines and quantity increases toward the perfectly competitive equilibrium