The outcome of the Stackelberg model is
A) a Nash equilibrium.
B) the same as the Cournot outcome.
C) that the follower earns zero profit.
D) that the follower cannot be on its best-response curve.
A
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The study of development economics is to understand
A) the personality factors that lead people to become entrepreneurs. B) why most of the patents on record have been given to men rather than to women. C) why some countries are rich and others are poor. D) why some products are successful in the market as soon as they are developed, whereas others do not catch on for years.
When the price level increases, aggregate planned expenditure decreases, which leads to
A) a rightward shift of the aggregate demand curve. B) neither a movement along nor a shift of the aggregate demand curve. C) a downward movement along the aggregate demand curve. D) an upward movement along the aggregate demand curve. E) a leftward shift of the aggregate demand curve.