Consider a Market Consisting of Two Firms Where the Inverse

Multiple Choice

Consider a market consisting of two firms where the inverse demand curve is given by P = 500 - 2Q₁ - 2Q₂.Each firm has a marginal cost of $50.Based on this information we can conclude that consumer surplus in the different equilibrium oligopoly models will follow which of the following orderings.

A) CS^Collusion > CS^Stackelberg > CS^Cournot > CS^Bertrand.
B) CS^Bertrand > CS^Stackelberg > CS^Cournot > CS^Collusion.
C) CS^Bertrand > CS^Cournot > CS^Stackelberg > CS^Collusion.
D) CS^Stackelberg > CS^Bertrand > CS^Cournot > CS^Collusion.