Use the Following to Answer Questions

question 118

Multiple Choice

Use the following to answer questions:
Figure: Monopoly Profits in Duopoly
-(Figure: Monopoly Profits in Oligopoly) Firms in the duopoly industry illustrated in the figure Monopoly Profits in Duopoly have zero fixed costs. The market demand curve is D₂. If the two firms colluded to maximize their combined economic profits, they would set the market price at _____, and combined economic profits of the firms would be _____.

• A) P₁; given by the area of the rectangle 0P₁CQ₄
• B) P₁; zero
• C) P₃; given by the area of the rectangle 0P₃AQ₁
• D) P₂; given by the area of the rectangle P₁P₂BG

---

Definitions:

Modern Matchmaking

Contemporary methods of bringing individuals together for romantic relationships, often using technology or professional services.

Mobile Dating App

A software application designed for use on smartphones that allows users to connect, meet, and potentially form romantic relationships.

Romantic Partner

A significant other in a romantic or loving relationship.

Mere Exposure Effect

An occurrence in psychology where mere exposure to things leads people to prefer them.