If a duopoly has reached the monopoly outcome, a firm can increase its profit if it and it alone ________ its price and ________ its production.

Question

Quizplus · Accepted Answer

In a duopoly that has reached the monopoly outcome, both firms are acting as a single monopoly, setting prices and production to maximize joint profits. If one firm lowers its price and increases its production, it can capture a larger market share and increase its profit at the expense of the other firm.

If a Duopoly Has Reached the Monopoly Outcome, a Firm