If two duopolists can collude successfully, then both will
A) earn greater profits than if they did not collude.
B) price at marginal cost.
C) price below average total cost.
D) lower their economic profits.

Question

Quizplus · Accepted Answer

Collusion allows duopolists to act like a monopoly, setting higher prices and restricting output, which leads to greater profits compared to competing independently.

If Two Duopolists Can Collude Successfully, Then Both Will