If Both Firms in a Duopoly Cheat on a Collusive

question 94

Multiple Choice

If both firms in a duopoly cheat on a collusive agreement, the price _______ and both firms are
_______.

• A) rises; better off
• B) falls; worse off
• C) rises; worse off
• D) falls; better off

---

Definitions:

LTE

Long Term Evolution, a standard for wireless broadband communication for mobile devices and data terminals, offering increased capacity and speed.

Cellular Technology

A type of wireless communication that is most commonly used for mobile phone networks, relying on a network of cell sites to transmit data.

4G

The fourth generation of broadband cellular network technology, succeeding 3G and offering higher speeds.

3G

The third generation of mobile telecommunications technology, enabling faster data transmission rates for mobile phones and data terminals.