Question

    For the demand function Q=a-P and the Marginal cost = c.

    Arrange the quantity produced by the following models in ascending order I) Bertnard II) Monopoly III) Cournot IV) Perfect Competition
    A II,I,III,IV Correct Answer Incorrect Answer
    B III,I,II,IV Correct Answer Incorrect Answer
    C IV,I,II,III Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer

    Solution

    Bertrand (Q) = a-c (Similar to Perfect Competition) Cournot (Q) = 2/3(a-c) Prefer cartel = 1/2(a-c) = Monopoly So, correct answer is II < III<I = IV (None of the above)

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