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^Coll^usion. C)CS^Bertrand CS^Cournot CS^Stackelberg CS^Collusion. D)CS^Stackelberg CS^Bertrand CS^Cournot CS^Collusion.

Question

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^Coll^usion. C)CS^Bertrand > CS^Cournot > CS^Stackelberg > CS^Collusion. D)CS^Stackelberg > CS^Bertrand > CS^Cournot > CS^Collusion.

Quizplus · Accepted Answer

The Answer of 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^Coll^usion. C)CS^Bertrand > CS^Cournot > CS^Stackelberg > CS^Collusion. D)CS^Stackelberg > CS^Bertrand > CS^Cournot > CS^Collusion.

Consider a Market Consisting of Two Firms Where the Inverse