If duopolists individually pursue their own self-interest when deciding how much to produce, the price they are able to charge for their product will be less than the monopoly price.

Question

Quizplus · Accepted Answer

When duopolists pursue their own self-interest and produce more, it leads to an increase in supply in the market, which then drives down the price. Thus, the price they are able to charge for their product will be less than the monopoly price where there is only one producer with market power.

If Duopolists Individually Pursue Their Own Self-Interest When Deciding How