If duopolists individually pursue their own self-interest when deciding how much to produce,what do we know about the price they are able to charge for their product
A)It will be less than the monopoly price.
B)It will be equal to the monopoly price.
C)It will be less than the perfectly competitive market price.
D)It will be equal to the perfectly competitive market price.

Question

Quizplus · Accepted Answer

If duopolists pursue their own self-interest, they will try to increase their profits by producing more, which will results in excess supply in the market, and price will have to be lowered to clear the market. Therefore, they will end up setting a price lower than the monopoly price.

If Duopolists Individually Pursue Their Own Self-Interest When Deciding How