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 πCollusion > πStackelberg > πCournot > πBertand
B None of the answers is correct.
CπCollusion > πCournot > πStackelberg > πBertand
D πBertand > πCollusion > πStackelberg > πCournot