Use the following to answer question(s): Monopoly Through Collusion

-(Exhibit: Monopoly Through Collusion) An exhibit similar to this one was used by the authors of the text to illustrate how firms might operate in an industry characterized as:
A) perfect competition.
B) duopoly.
C) monopolistic competition.
D) having a four-firm concentration ratio of 100.

Question

Use the following to answer question(s): Monopoly Through Collusion
 
-(Exhibit: Monopoly Through Collusion) An exhibit similar to this one was used by the authors of the text to illustrate how firms might operate in an industry characterized as:
A) perfect competition. 
B) duopoly. 
C) monopolistic competition. 
D) having a four-firm concentration ratio of 100.

Quizplus · Accepted Answer

The exhibit shows two firms operating in the industry, indicating a duopoly. The firms are colluding to maximize profits and limit competition, indicating that they have market power and are not operating in a perfectly competitive or monopolistically competitive industry. The four-firm concentration ratio is not provided in the exhibit, so it is not a relevant factor in determining the industry type.

Use the Following to Answer Question(s): Monopoly Through Collusion