Question

Arrange the following models in a chronological order oldest to latest: A. Cournot's Model, B. Bertrand Model, C. Edgeworth Model, D. Chamberlin Model, E. Sweezy Kinked Demand Curve.

• A. A, B, C, D, E
• B. A, B, D, C, E
• C. A, C, B, D, E
• D. A, C, D, B, E

Hint:

For oligopoly models, remember: Cournot comes first, followed by Bertrand and Edgeworth, then later Chamberlin and Sweezy.

Answer 1

The Correct Option is A

Concept: Oligopoly models developed over time to explain strategic interaction among firms.

Step 1: Identify the oldest model.
Cournot's model is one of the earliest oligopoly models and is based on quantity competition. \[ A = \text{Cournot's Model} \]

Step 2: Then Bertrand model.
Bertrand model explains price competition among firms. \[ B = \text{Bertrand Model} \]

Step 3: Then Edgeworth model.
Edgeworth further modified price competition under capacity constraints. \[ C = \text{Edgeworth Model} \]

Step 4: Then Chamberlin model.
Chamberlin's model is related to monopolistic competition and product differentiation. \[ D = \text{Chamberlin Model} \]

Step 5: Finally Sweezy kinked demand curve.
Sweezy's model explains price rigidity in oligopoly. \[ E = \text{Sweezy Kinked Demand Curve} \] Hence, the correct chronological order is: \[ A, B, C, D, E \]