For a duopoly,the smallest total quantity is produced when the duopoly achieves
A) the competitive outcome.
B) the monopoly outcome.
C) an outcome between the competitive outcome and the monopoly outcome.
D) its noncooperative Nash equilibrium.
E) Both answers A and D are correct because both refer to the same amount of output.

Question

Quizplus · Accepted Answer

The smallest total quantity is produced when the duopoly achieves the monopoly outcome. In a monopoly, the output level is lower than in a competitive market, so if the duopoly achieves a monopoly outcome, they will produce less than if they were in a more competitive environment. This will result in the smallest total quantity.

For a Duopoly,the Smallest Total Quantity Is Produced When the Duopoly