If a Duopoly Has Reached the Monopoly Outcome and Only

question 187

Multiple Choice

If a duopoly has reached the monopoly outcome and only one firm increases its production,that firm's profit ________ and the other firm's profit ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases
• E) increases; does not change

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Definitions:

Freight Costs

Expenses incurred by a company to transport goods, included in the cost of goods sold or recorded as an expense depending on the terms of delivery.

Merchandise

Merchandise refers to the goods that are bought and sold within a retail or wholesale environment.

Cash Discount

A reduction in the invoice price given by the seller to the buyer for quick payment within a specified period.

Merchandise

Products that a company buys to resell to its customers.