Consider the Diagram Below Which Shows the Market Demand Curve

question 165

Multiple Choice

Consider the diagram below which shows the market demand curve for a particular product.Suppose this market is served by two duopolists who each face the marginal cost curve shown in the diagram.The marginal revenue curve that a monopolist would face in this market is also shown.Which of the following statements is true?

• A)The total output in this market will likely be 2 units when the market is served by a duopoly.
• B)The price in this market will likely be $6 when the market is served by a duopoly.
• C)The total revenue to each firm will likely be more than $16 when the market is served by a duopoly.
• D)The total output in this market will likely be less than 4 units when the market is served by a duopoly.

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