Use the Following to Answer Questions

question 243

Multiple Choice

Use the following to answer questions:
Figure: Monopoly Profits in Duopoly
-(Figure: Monopoly Profits in Duopoly) The figure Monopoly Profits in Duopoly shows how an industry consisting of two firms that face identical demand curves (D₁) can collude to increase profits. The market demand curve is D_2. If the firms collude to share the market demand equally, then each firm will act as if its demand curve is given by:

• A) D₁.
• B) D₂.
• C) MR₁.
• D) 2 × D₁.

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Definitions:

Twelfth Century

The period in history from the year 1100 to 1199, marking the High Middle Ages in Europe.

Kingdom of Ghana

An ancient West African empire, known for its wealth in gold and trade networks, existing from around the 6th to 13th centuries AD.

Ethnic Communities

Groups of people sharing a common racial, national, tribal, religious, linguistic, or cultural origin or background.

West African Slavery

The capture and sale of people from West Africa into bondage, pivotal to the Atlantic slave trade from the 16th to the 19th century.