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

a QCollusion < QCournot < QStackelberg < QBertrand

b QBertrand < QCollusion < QCournot < QStackelberg

c QBertrand < QStackelberg < QCournot < QCollusion

d QCollusion < QStackelberg < QCournot < QBertrand

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92598712

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