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In the Cournot and Stackelberg oligopoly models, firms make decisions about how much to produce. The firms' combined profits would be maximized if they behave
In the Cournot and Stackelberg oligopoly models, firms make decisions about how much to produce. The firms' combined profits would be maximized if they behave as an industry monopoly and then divide up the profits. Is this what happens? Group of answer choices No, both firms underproduce and the market price is higher than under monopoly. Yes. No, both firms overproduce and the market price is lower than under monopoly. Yes, but the Stackelberg leader earns all of the profits in the Stackelberg model
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