Imagine a Duopoly in Which Two Firms,A and B,produce the Monopoly

question 131

Multiple Choice

Imagine a duopoly in which two firms,A and B,produce the monopoly profit-maximizing output and equally share the economic profit.If firm A increases its output,the market price ________ and total economic profit of the two firms combined ________.

• A) falls; decreases
• B) falls; increases
• C) rises; decreases
• D) rises; increases
• E) falls; does not change

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Definitions:

Line-Wedge Structure

A representation of a molecule in 3-D, where lines and wedges depict bonds in plane, coming out of the plane, and going behind the plane respectively.

Stereochemistry

The study of the spatial arrangement of atoms in molecules and the impact of this arrangement on the physical and chemical properties of those molecules.

Racemic Alanine

A mixture of equal amounts of the two enantiomers of alanine, an amino acid, showing no optical activity due to the internal compensation of chiralities.

Ethanol

A volatile, flammable, colorless liquid alcohol, commonly used as a solvent and intoxicant.