For a duopoly,the maximum total profit is reached when the duopoly produces
A) the same amount of output as the competitive outcome.
B) the same amount of output as the monopoly outcome.
C) an amount of output that lies between the competitive outcome and the monopoly outcome.
D) more output than the competitive outcome.
E) less output than the monopoly outcome.

Question

Quizplus · Accepted Answer

In a duopoly, maximum total profit is achieved when the firms collude to produce the same output as a monopoly, restricting output to raise prices.

For a Duopoly,the Maximum Total Profit Is Reached When the Duopoly