If Both Firms in a Duopoly Cheat on a Collusive

question 51

Multiple Choice

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

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

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Definitions:

Distribution

Refers to the way in which something is shared out among a group or spread over an area.

Alternative Hypothesis

The hypothesis that proposes there is a statistically significant difference between two or more sets of data, contrasting the null hypothesis.

Region of Rejection

The range of values for which the null hypothesis is rejected in favor of the alternative hypothesis in hypothesis testing.

p < .05

Indicates that the probability of the observed data occurring under the null hypothesis is less than 5%, suggesting statistical significance.