If two duopolists can stick to a cartel agreement to boost their prices,then both
A) make greater economic profits than if they did not collude.
B) price at marginal cost.
C) price below average total cost.
D) decrease their economic profits.
E) increase their production so that each produces more than if they did not collude.

Question

Quizplus · Accepted Answer

By colluding and sticking to a cartel agreement, the duopolists can reduce competition and increase their prices, which would lead to greater economic profits than if they did not collude.

If Two Duopolists Can Stick to a Cartel Agreement to Boost