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 aggregate quantity in the different equilibrium oligopoly models will follow which of the following orderings.

A) Q^Collusion < Q^Stackelberg < Q^Cournot < Q^Bertrand.
B) Q^Collusion < Q^Cournot < Q^Stackelberg < Q^Bertrand.
C) Q^Bertrand < Q^Collusion < Q^Cournot < Q^Stackelberg.
D) Q^Bertrand < Q^Stackelberg < Q^Cournot < Q^Collusion.