If Two Duopolists Can Collude Successfully, Then Both Will

question 133

Multiple Choice

If two duopolists can collude successfully, then both will

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

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Definitions:

Productivity

The measure of the efficiency of production, often quantified as output per unit of input.

Wages

Wages are the payments made to labor for their services, typically calculated on an hourly, daily, or piecework basis, and are a primary form of income for employees.

Rules of Thumb

General principles that provide practical instructions or guidelines, typically based on experience rather than theory.

Complex Decisions

Decisions that involve multiple factors, variables, or outcomes, often requiring significant judgement and analysis to resolve.