Which of one the following statements are correct about the Kreps and Scheinkerman (1983) model? A It is a 2-stage dynamic model in which the firms decide on quantities in stage 1 and make pricing decisons with identical constant marginal cost in stage 2. B It is a static model just like the Cournot model. C It is a static model of price competition but the products of the firms are differentiated. D It is a 2-stage dynamic model in which the firms decide on capacities in stage 1 and make pricing decisions with capacity constants in stage 2.
Which of one the following statements are correct about the Kreps and Scheinkerman (1983) model? A It is a 2-stage dynamic model in which the firms decide on quantities in stage 1 and make pricing decisons with identical constant marginal cost in stage 2. B It is a static model just like the Cournot model. C It is a static model of price competition but the products of the firms are differentiated. D It is a 2-stage dynamic model in which the firms decide on capacities in stage 1 and make pricing decisions with capacity constants in stage 2.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter12: Price And Output Determination: Oligopoly
Section: Chapter Questions
Problem 2E
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Which of one the following statements are correct about the Kreps and Scheinkerman (1983) model?
A It is a 2-stage dynamic model in which the firms decide on quantities in stage 1 and make pricing decisons with identical constant marginal cost in stage 2.
B It is a static model just like the Cournot model.
C It is a static model of price competition but the products of the firms are differentiated.
D It is a 2-stage dynamic model in which the firms decide on capacities in stage 1 and make pricing decisions with capacity constants in stage 2.
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