Under a Cournot Duopoly, the Collusion Curve Represents

question 118

Multiple Choice

Under a Cournot duopoly, the collusion curve represents:

• A) all possible allocations of the pure monopoly quantity among the two firms in the duopoly.
• B) all possible allocations of the pure monopoly quantity that would be possible if the two firms in the duopoly did not cooperate.
• C) all optimal price-quantity outcomes for a cartel rather than a Cournot duopoly.
• D) the potential profits to be earned by firms in a collusive cartel.

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