Consider a Market Consisting of Two Firms Where the Inverse

question 22

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

• A) P^Bertrand < P^Stackelberg < P^Cournot < P^Collusion
• B) P^Stackelberg < P^Collusion < P^Cournot < P^Bertrand
• C) P^Collusion < P^Cournot < P^Stackelberg < P^Bertrand
• D) P^Bertrand < P^Cournot < P^Stackelberg < P^Collusion

---

Definitions:

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often related to imminent events or something with an unpredictable result.

Hysteria

A psychological disorder characterized by excessive or uncontrollable emotion or excitement, now recognized as a variety of disorders.

Opposite Extremes

Situations, concepts, or phenomena that are completely contrary to each other, exhibiting no common ground.

Organic Disorder

A term for physical or physiological disorders caused by structural changes in the body.