If Two Duopolists Can Stick to a Cartel Agreement to Boost

question 77

Multiple Choice

If two duopolists can stick to a cartel agreement to boost their prices,then both

• A) make greater economic profits than if they did not collude.
• B) price at marginal cost.
• C) price below average total cost.
• D) decrease their economic profits.
• E) increase their production so that each produces more than if they did not collude.

---

Definitions:

Norepinephrine

A neurotransmitter involved in arousal, attention, and the fight-or-flight response.

Internal

Pertaining to or occurring within an individual's mind or self, often used in the context of internal vs. external motivation or processes.

Stable

Characterized by consistency, resilience, or lack of significant change over time.

Depressed

Depressed refers to a state of low mood and aversion to activity that can affect a person's thoughts, behavior, feelings, and sense of well-being, commonly associated with depression.