If a Certain Market Were a Monopoly,then the Monopolist Would

question 62

Multiple Choice

If a certain market were a monopoly,then the monopolist would maximize its profit by producing 1,000 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 1,000 units of output.
• B) Each duopolist produces 600 units of output.
• C) One duopolist produces 400 units of output and the other produces 600 units of output.
• D) One duopolist produces 800 units of output and the other produces 400 units of output.

---

Definitions:

Mixed Costs

Costs comprising both constant and fluctuating elements, altering in aggregate with activity levels yet not in direct correlation.

Per Unit Basis

Calculations or measurements made by dividing the total by the number of units to find the amount corresponding to a single unit.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.

Activity

An action or task that is part of a process or program, often contributing to achieving a goal or outcome.