Use the following to answer questions: Figure: Monopoly Profits in Duopoly -(Figure: Monopoly Profits in Duopoly) If the two firms in the figure Monopoly Profits in Duopoly colluded to split production evenly and to maximize their joint profits, the market price they set would be _____, and each firm's economic profit would be _____. (Assume that the market demand curve is D₂.) A) P₂; given by the area of the rectangle bounded by P₁P₂EF = FEBG B) P₁; P₁P₃AF C) P₃; given by the area of the rectangle bounded by 0P₃AQ₁ D) P₂; given by the area of the rectangle bounded by P₁P₂BG

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The correct answer is A because the market price they set would be P2, and each firm's economic profit would be given by the area of the rectangle bounded by P1P2EF = FEBG.

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