Economics · Consumer Surplus and Market Structure Comparison
Holding demand and cost conditions constant, which of the following correctly ranks market structures from HIGHEST to LOWEST consumer surplus?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Stackelberg > Perfect Competition > Cournot > Single-price Monopoly > Monopolistic Competition > First-degree Discriminating Monopoly
- 2Perfect Competition > Cournot Duopoly > Monopolistic Competition (LR) > Stackelberg > First-degree Discriminating Monopoly > Single-price Monopoly
- 3Perfect Competition > Stackelberg > Cournot Duopoly > Monopolistic Competition (LR) > Single-price Monopoly > First-degree Discriminating Monopoly✓
- 4Perfect Competition > Cournot Duopoly > Stackelberg > Monopolistic Competition (LR) > Single-price Monopoly > First-degree Discriminating Monopoly
Correct answer
Perfect Competition > Stackelberg > Cournot Duopoly > Monopolistic Competition (LR) > Single-price Monopoly > First-degree Discriminating Monopoly
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