Maximization of joint profits is MOST likely when firms are:
A)perfect competitors.
B)monopolistic competitors.
C)duopolists who collude.
D)natural monopolists.

Question

Quizplus · Accepted Answer

Duopolists who collude can coordinate their actions to maximize joint profits, as they have a significant market power and can influence the market price. Perfect competitors, monopolistic competitors, and natural monopolists do not have enough market power to coordinate their actions and maximize joint profits.

Maximization of Joint Profits Is MOST Likely When Firms Are