A duopoly pricing strategy results in a(n)________ profitable outcome than cartel pricing.

Question

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In a duopoly, the two firms compete with each other, leading to lower prices and higher output. This results in lower profits for each individual firm but a more efficient outcome for the market as a whole. In a cartel, the firms collude to set prices and output levels, resulting in higher profits but less efficient outcomes for the market. Therefore, a duopoly pricing strategy results in less profitable outcomes than cartel pricing.

A Duopoly Pricing Strategy Results in A(n)________ Profitable Outcome Than