Suppose the market supply curve is p = 5 + Q. At a price of 10, producer surplus equals

Suppose a market with a Cournot structure has five firms and a market price elasticity of demand equal to -2. What is a Cournot firm's Lerner Index?

The profitability of the second mover in a Stackelberg model issmaller than that of the first mover.

guaranteed to be negative.

greater than that of the first mover.

greater than the Cournot profits