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. PCollusion < PCournot < PStackelberg < PBertrand
B. PBertrand < PCournot < PStackelberg < PCollusion
C. PBertrand < PStackelberg < PCournot < PCollusion
D. PStackelberg < PCollusion < PCournot < PBertrand
Answer: C
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