A duopoly pricing strategy results in a(n)________ profitable outcome compared to cartel pricing.

Question

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In a duopoly, there are only two firms in the market and they are competing against each other. Each firm will try to set their own price to maximize profits, which can lead to a price war and ultimately lower profits for both firms. In a cartel, the firms work together to set prices and limit competition, which can result in higher profits for the cartel as a whole. Therefore, a duopoly pricing strategy is less profitable compared to cartel pricing.

A Duopoly Pricing Strategy Results in A(n)________ Profitable Outcome Compared