Use the Following to Answer Question

question 179

Multiple Choice

Use the following to answer question:
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.If the firms collude to share the market demand equally,then each firm will act as if its demand curve is given by _____,while the market demand curve is given by _____.

• A)D₁;MR₂
• B)D₂;D₁
• C)D₁;D₂
• D)MR₁;MR₂

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Definitions:

Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Entire Organization

Refers to the whole institution or company, including all of its employees, structures, and functions.

Functional Designs

Designs that prioritize the practicality and function of a product, facility, or system over aesthetic considerations.

Economical

Economical pertains to the efficient and judicious use of resources, often with the aim of minimizing cost and waste while achieving a specific purpose or outcome.