Use the Following to Answer Question(s): Monopoly Through Collusion

question 27

Multiple Choice

Use the following to answer question(s) : Monopoly Through Collusion

-(Exhibit: Monopoly Through Collusion) The exhibit illustrates the situation in an industry that consists of two firms facing identical demand curves; the demand curve for each firm is D₁.Which of the following assumptions is not a part of the analysis illustrated by the model?

• A) The two firms are identical.
• B) The two firms sell identical products.
• C) While the firms face the same MC curves, their respective TC curves have unequal slopes.
• D) Each firm has a horizontal marginal cost curve.

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