Multiple Choice

-(Exhibit: Monopoly Through Collusion) The exhibit illustrates the situation in an industry that consists of two firms facing identical demand curves; the demand curve for each firm is D1. If the firms collude and agree to share the market demand equally, then each firm will act as if its demand curve is given by:
A) D1.
B) D2.
C) MR1.
D) 2 x D1.
Correct Answer:
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