Consider a Market Consisting of Two Firms Where the Inverse $\pi$

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

A) $\pi$ ^Bertand > $\pi$ ^Collusion > $\pi$ ^Stackelberg > $\pi$ ^Cournot.
B) $\pi$ ^Collusion > $\pi$ ^Cournot > $\pi$ ^Stackelberg > $\pi$ ^Bertand.
C) $\pi$ ^Collusion > $\pi$ ^Stackelberg > $\pi$ ^Cournot > $\pi$ ^Bertand.
D) None of the statements associated with question are correct.