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 CompetitionSolution
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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