Which of the Following Models Results in the Greatest Deadweight

question 28

Multiple Choice

Which of the following models results in the greatest deadweight loss assuming a fixed number of firms with identical costs and a given demand curve?

• A) Cournot
• B) Stackelberg
• C) Monopoly
• D) Perfect competition

---

Definitions:

Sherman Act

The Sherman Act is a foundational antitrust law in the United States, passed in 1890, that prohibits monopolistic practices and promotes competition.

Antitrust Laws

Regulations established to promote competition and prevent monopolies by restricting unfair business practices and mergers.

Federal Trade Commission

A U.S. federal agency responsible for enforcing laws against deceptive or unfair business practices.

Antitrust Conviction

A legal judgment against a company or individual for violating laws intended to prevent anti-competitive behaviour and promote fair market competition.