If Both Firms in a Duopoly Cheat on a Collusive

question 51

Multiple Choice

If both firms in a duopoly cheat on a collusive agreement, the price ________ and both firms are ________.

• A) falls; better off
• B) rises; worse off
• C) falls; worse off
• D) rises; better off

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Definitions:

Contributing Factor

An element that plays a part in causing a situation or outcome.

Circumstantial Factor

An element or condition that affects a situation but is not a direct cause; often considered in evaluations or analysis of outcomes.

Medians

The middle value of a data set when it is ordered from least to greatest, or the line in geometry that divides a figure into two equal parts.

Frequencies

The rate at which a vibration occurs that constitutes a wave, either in material (as in sound waves) or in an electromagnetic field (as in radio waves and light).