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Consider a Market Consisting of Two Firms Where the Inverse

Question 118

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) CSCollusion > CSStackelberg > CSCournot > CSBertrand
B) CSBertrand > CSStackelberg > CSCournot > CSCollusion
C) CSBertrand > CSCournot > CSStackelberg > CSCollusion
D) CSStackelberg > CSBertrand > CSCournot > CSCollusion

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