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Figure: Monopoly Profits in Duopoly
-(Figure: Monopoly Profits in Duopoly) Use Figure: Monopoly Profits in Duopoly.Suppose there are two firms in this industry.Each firm faces an identical demand curve,D₁,and the market demand curve is D₂.The figure illustrates how firms can reap monopoly profits,even in an industry with:

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Figure: Monopoly Profits in Duopoly

-(Figure: Monopoly Profits in Duopoly) Use Figure: Monopoly Profits in Duopoly.Suppose there are two firms in this industry.Each firm faces an identical demand curve,D₁,and the market demand curve is D₂.The figure illustrates how firms can reap monopoly profits,even in an industry with:

Quizplus · Accepted Answer

The scenario describes a duopoly, which means there are two firms in the industry. This is directly stated in the question, indicating that even with two firms, monopoly profits can be achieved, which aligns with choice B.

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