In a Stackelberg duopoly,

A) leader firms are always dominant.
B) no Nash equilibrium is possible.
C) the two firms move simultaneously.
D) one firm is the leader; the other is the follower.

Stackelberg Duopoly

A market structure where two firms compete with one another with one firm establishing itself as a leader by setting its output or price first, and the other firm acting as a follower.

Nash Equilibrium

An idea in game theory where a player cannot gain an advantage by altering their strategy if the strategies of other players stay the same.

Leader Firms

Companies that dominate a particular market or industry, often setting trends and standards for others to follow.