Consider a Duopoly with Collusion

question 21

Multiple Choice

Consider a duopoly with collusion.If the duopoly maximizes profit,

• A)each firm will produce the same amount.
• B)each firm will produce its maximum output possible.
• C)industry marginal revenue will equal industry marginal cost at the level of total output.
• D)industry demand will equal industry marginal cost at the level of total output.
• E)price equals average total cost.

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Definitions:

Aversive Stimulation

A process involving the use of unpleasant stimuli to reduce or eliminate undesirable behaviors.

Response

A response to a certain trigger or scenario that may manifest physically, emotionally, or in actions.

Organism

A living entity that can function independently, such as an animal, plant, or microorganism.

Positive Reinforcers

Stimuli that, when introduced after a response, increase the probability of that response occurring in the future.