Which of the Following Is Likely to Occur If Two

question 70

Multiple Choice

Which of the following is likely to occur if two firms in a duopoly market decide to collude and produce the same output and charge the same price?

• A)Each firm will receive twice the profit they earned before the agreement.
• B)Together the firms will produce less than the monopoly output.
• C)Each firm will receive exactly half of the monopoly profit.
• D)None of the firms will have an incentive to charge a lower price.

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Definitions:

Applied Research

A form of systematic inquiry involving the practical application of science. It accesses and uses some part of the research communities' accumulated theories, knowledge, methods, and techniques, for a specific, state-, business-, or client-driven purpose.

Biological Psychology

The study of the biological underpinnings of cognitive, emotional, and behavioral processes.

Head Injuries

Physical trauma to the head, which can affect the brain and lead to a range of symptoms, from mild to severe.

Abstract-Reasoning Skills

The skill to examine data, identify trends and links, and address issues at a sophisticated, conceptual stage.