-If Two Duopolists Can Stick to a Cartel Agreement to Boost

question 42

Multiple Choice

-If two duopolists can stick to a cartel agreement to boost their prices, then both

• A) price below average total cost.
• B) make greater economic profits than if they did not collude.
• C) price at marginal cost.
• D) decrease their economic profits.
• E) increase their production so that each produces more than if they did not collude.

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Definitions:

Natural Selection

a process by which evolutionary changes occur in species, where individuals with traits better suited to their environment are more likely to survive and reproduce.

Darwin's Theory

A scientific theory of biological evolution that explains how species evolve over time through the process of natural selection, survival of the fittest, and genetic variations.

Animal Evolution

The gradual development and diversification of animals over millions of years, guided by natural selection, adaptation, and genetic variation.

Gregor Mendel

The 19th-century scientist known as the father of genetics for his groundbreaking work on the inheritance of traits in pea plants, leading to Mendelian genetics.