In a Duopoly, If One Firm Increases Its Price, Then

question 307

Multiple Choice

In a duopoly, if one firm increases its price, then the other firm can

• A)lose $75 million in profit and firm A will gain $50 million in profit.
• B)gain $50 million in profit and firm A will lose $50 million in profit.
• C)gain $75 million in profit and firm A will lose $50 million in profit.
• D)gain $50 million in profit and firm A will lose $75 million in profit.

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