Consider a Duopoly with Collusion

question 50

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)none of the above.

---

Definitions:

Service Quality

The perception of the degree to which a service meets the customer's expectations and needs, often assessed through factors like reliability, responsiveness, and empathy.

Credence Properties

Attributes of a product or service that are difficult or impossible for the consumer to evaluate even after purchase and consumption.

Geek Squad

A subsidiary of Best Buy, providing various tech support services from installation to repair for consumer electronics.

Credence Properties

Characteristics of a product or service that cannot be fully evaluated by the consumer even after purchase and use, requiring trust in the provider.