Use the following to answer question: 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.Which assumption is NOT a part of the analysis illustrated by the model? A)The two firms are identical. B)The two firms sell identical products. C)While the firms face the same MC curves,their respective TC curves have unequal slopes. D)Each firm has a horizontal marginal cost curve.

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The model assumes that the two firms are identical in all aspects, including their cost structures. Therefore, the assumption that they have different total cost (TC) curves with unequal slopes is not part of the analysis.

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