If a Duopoly Collusive Agreement Is Made That Maximizes Joint

question 57

Multiple Choice

If a duopoly collusive agreement is made that maximizes joint profit,

• A)each of the duopolists has no incentive to cheat on the agreement.
• B)each duopolist has the incentive to cheat on the duopoly agreement by lowering the price.
• C)each duopolist has the incentive to cheat on the agreement by increasing the price to make monopoly profit.
• D)there is no concern over the entrance of potential rivals, since they cannot decrease the duopolists' profit.
• E)the dominant strategy is to collude.

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Definitions:

Collective Action

The action taken together by a group of people whose goal is to enhance their status and achieve a common objective.

Deviance

refers to behaviors or actions that violate societal norms and expectations, which can range from minor breaches to major offenses.

Conflict Theory

A sociological perspective that views social life as a competition and conflict between groups for limited resources.

Deviance

Behaviors or actions that violate societal norms, and which may attract social disapproval or sanction.