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Explain clearly Consider a Stackelberg duopoly in which firm 1 sets q , firm 2 observes q and then chooses q ,. O a. Firm
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Consider a Stackelberg duopoly in which firm 1 sets q , firm 2 observes q and then chooses q ,. O a. Firm 1 chooses q, LARGER than the static best response to q, because this moves total output closer to the monopoly output. O b. Firm 1 chooses q, SMALLER than the static best response to q, because this moves total output closer to the monopoly output. O c. q, is a static best response to 9, O d. Firm 1 chooses q, LARGER than the static best response to q, because this results in a smallerStep by Step Solution
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