If a Certain Market Were a Monopoly, Then the Monopolist

question 89

Multiple Choice

If a certain market were a monopoly, then the monopolist would maximize its profit by producing 4,000 units of output. If, instead, that market were a duopoly, then which of the following outcomes would be most likely if the duopolists successfully collude?

• A)Each duopolist produces 4,000 units of output.
• B)Each duopolist produces 1,500 units of output.
• C)One duopolist produces 2,400 units of output and the other produces 1,600 units of output.
• D)One duopolist produces 3,000 units of output and the other produces 1,500 units of output.

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Definitions:

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Self-Handicapping

A strategy where people avoid effort in the hopes of keeping potential failure from hurting self-esteem.

Self-Fulfilling Prophecy

A belief or expectation that causes itself to become true due to positive feedback between belief and behavior.

Fundamental Attribution Error

The tendency for observers to underestimate situational influences and overestimate dispositional influences upon others' behaviors.