If Duopolists Individually Pursue Their Own Self-Interest When Deciding How

question 494

Multiple Choice

If duopolists individually pursue their own self-interest when deciding how much to produce, the profit-maximizing price they will charge for their product will be

• A)less than the monopoly price.
• B)equal to the perfectly competitive market price.
• C)greater than the monopoly price.
• D)possibly less than or greater than the monopoly price.

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Definitions:

Budget Surplus

An excess of tax revenue over government spending

Loanable Funds

The resources available for borrowing in the financial markets, comprising savings and any other available funds.

National Saving

The total amount of savings generated within a country, including both private savings by individuals and businesses, and public savings from government budgets.

Net Capital Outflow

The variance between the act of local inhabitants investing overseas and international investors buying within the country.