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Question:

Which of the following is most likely regarding the Stackelberg oligopoly model?

A Firms in the industry make their decisions sequentially.
Explaination

In contrast to the Cournot model (which assumes that decision‐making is simultaneous), the Stackelberg model (also known as dominant firm, or top dog model) assumes that decision‐ making is sequential. Under this model, the dominant firm can increase its profits by unilaterally increasing its price (unlike Nash equilibrium). Further, the dominant firm is independent, while all other firms take their cue from the actions of the dominant firm.