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.
B
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To calculate the revenue government receives when a tax is imposed on a good, multiply the
A) pre-tax equilibrium price by the pre-tax quantity. B) after-tax equilibrium price by the after-tax quantity. C) tax by the pre-tax quantity. D) tax by the after-tax quantity. E) after-tax equilibrium price by the after-tax quantity and then subtract the pre-tax equilibrium price multiplied by the pre-tax quantity.
The only way to eliminate all competition from social life would be through
A) abolishing money. B) eliminating all scarcity. C) eliminating all selfishness. D) giving government the power to control everything. E) making everyone as concerned about others as they are about themselves.