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:

Industrial Expansion

The increase in industrial activity, typically characterized by the growth of manufacturing output and the development of new technologies, leading to economic growth.

Socialist Party

A political party advocating for socialism, which includes the belief in social ownership, democratic control of the means of production, and the political ideology focused on social equality.

Eugene Debs

was an American socialist, political activist, trade unionist, and one of the founding members of the Industrial Workers of the World, as well as a five-time Socialist Party of America presidential candidate.

Nationalize

The process by which a government takes ownership and control of a private industry or assets, typically for the purpose of redistributing wealth and maintaining essential services.