A duopoly in which the two firms collude on a price to set is called a

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In a collusive duopoly, the two firms in the market agree to set a specific price level to maximize their joint profits. This allows them to avoid undercutting each other and engaging in a price war, which would ultimately harm both of their profits. The other two options, the Bertrand model and competitive duopoly, indicate situations where the two firms are competing on price rather than colluding to set it.

A Duopoly in Which the Two Firms Collude on a Price