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:

Critical Elements

Fundamental components or aspects that are essential for the success or effectiveness of a system, process, or strategy.

Bona Fide Occupational

A qualification or requirement that is genuinely necessary for a particular job, used to justify certain hiring criteria that might otherwise be viewed as discriminatory.

Discriminate Hiring

The unfair treatment of potential employees based on non-job-related factors such as race, gender, or age during the hiring process.

Protected Class

Categories of people who are legally protected from discrimination and harassment in the workplace and other settings, based on characteristics such as race, gender, religion, national origin, age, disability, or veteran status.