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Figure: Monopoly Profits in Duopoly
-(Figure: Monopoly Profits in Duopoly) Use Figure: Monopoly Profits in Duopoly.The figure shows how an industry consisting of two firms that face identical demand curves (D1) can collude to increase profits.The market demand curve is D2. If the firms collude to share the market demand equally,then each firm will act as if its demand curve is given by:
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