If Duopolists Colluded but Then Stopped Colluding

question 75

Multiple Choice

If duopolists colluded but then stopped colluding,

• A)price and quantity would rise.
• B)price would rise and quantity would fall.
• C)price would fall and quantity would rise
• D)price and quantity would fall.

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Definitions:

Testable

A quality of a hypothesis that allows it to be proven true or false through experimentation or observation.

Predictions

Predictions are statements or claims about what will happen in the future, often based on observation, data analysis, or theoretical modeling.

Critical Thinking

Thinking that does not blindly accept arguments and conclusions. Rather, it examines assumptions, discerns hidden values, evaluates evidence, and assesses conclusions.

Existing Evidence

Existing evidence refers to the body of already available data, observations, or established facts that can support or refute a hypothesis or claim.