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

A) ^Bertand > ^Collusion > ^Stackelberg > ^Cournot
B) ^Collusion > ^Cournot > ^Stackelberg > ^Bertand
C) ^Collusion > ^Stackelberg > ^Cournot > ^Bertand
D) None of the preceding answers is correct.