If There Is a Collusive Agreement in a Duopoly to Maximise

question 146

Multiple Choice

If there is a collusive agreement in a duopoly to maximise profit, then the price will

• A) be the same as the price set by a monopoly.
• B) be the same as the price set by a competitive industry.
• C) equal the marginal cost of production.
• D) equal the average total cost of production.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, such as loans, accounts payable, and mortgages.

Purchasing Policy

The price and timing of raw materials and other goods and services necessary to build, sell, and support products.

Compensation

The payment or benefit given to someone in exchange for services or as a recompense for losses.

Obligations

Duties or commitments that one is bound to fulfill legally or morally.