The maximum total economic profit that can be made by colluding duopolists
A) is less than the economic profit made by a monopolist.
B) equals the economic profit made by a monopolist.
C) exceeds the economic profit made by a monopolist.
D) bears no necessary relation to the economic profit made by a monopolist.

Question

Quizplus · Accepted Answer

Colluding duopolists can act like a monopoly, maximizing joint profits by setting prices and output levels similar to a monopolist, thus achieving the same economic profit as a monopolist.

The Maximum Total Economic Profit That Can Be Made by Colluding