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Use the following to answer questions:
Figure: Monopoly Profits in Duopoly Use the following to answer questions: Figure: Monopoly Profits in Duopoly   -(Figure: Monopoly Profits in Duopoly)  Look at the figure Monopoly Profits in Duopoly. Each firm faces an identical demand curve, D<sub>1</sub>,<sub> </sub>and the market demand curve is D<sub>2</sub>. The figure illustrates how firms can reap monopoly profits even in an industry with: A)  free entry and exit. B)  two firms. C)  monopolistic competition. D)  a four-firm concentration ratio of 50.
-(Figure: Monopoly Profits in Duopoly) Look at the figure Monopoly Profits in Duopoly. Each firm faces an identical demand curve, D1, and the market demand curve is D2. The figure illustrates how firms can reap monopoly profits even in an industry with:


Definitions:

Consistency

The characteristic of being uniform, stable, and lacking in contradiction over time or across situations.

Distinctiveness

The quality of being easily distinguishable or set apart from others due to unique features or characteristics.

Appropriateness

Suitability or relevance of a behavior, response, or action in a specific context or situation.

Typicality

The degree to which an object or event is representative of its class, category, or group, affecting how easily and quickly it is recognized and processed.

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