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Figure: Monopoly Profits in Duopoly
-(Figure: Monopoly Profits in Duopoly) Use Figure: Monopoly Profits in Duopoly.The figure shows how an industry consisting of two firms that face identical demand curves (D1) can collude to increase profits.If the firms collude to share the market demand equally,then each firm will act as if its demand curve is given by _____,while the market demand curve is given by _____.
Economies of Scale
The cost advantages that enterpises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.
Learning-by-doing
Learning-by-doing is the process of improving skills and efficiency in a task or operation through practical experience and repetition over time.
Labor Specialization
The division of labor where individuals focus on a narrow area of expertise, improving efficiency and productivity.
Economies of Scale
The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.
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