If Two Duopolists Can Collude Successfully, Then Both Will

question 68

Multiple Choice

If two duopolists can collude successfully, then both will

• A) earn greater profits than if they did not collude.
• B) price at marginal cost.
• C) price below average total cost.
• D) lower their economic profits.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and in the creation of innovations and inventions.

Real Wages

Wages adjusted for inflation, representing the true purchasing power of income.

Capital Equipment

Capital equipment consists of tangible assets such as buildings, machinery, and tools that are used in the production process to generate goods and services.

Nominal Wages

The wage earned by workers as expressed in current dollars, without adjustment for inflation, representing the face value of the pay received.