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. f the firms collude and agree to share the market demand equally, then each firm will act as if its marginal revenue curve is given by:
A) MR1.
B) 2 MR1.
C) MR2.
D) MC.
Correct Answer:
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