Suppose That Sonny and Cher Are Duopolists in the Music

Suppose that Sonny and Cher are duopolists in the music industry.In January,they agree to work together as a monopolist,charging the monopoly price for their music and producing the monopoly quantity of songs.By February,each singer is considering breaking the agreement.What would you expect to happen next?

A) Sonny and Cher will determine that it is in each singer's best self interest to maintain the agreement.
B) Sonny and Cher will each break the agreement.The new equilibrium quantity of songs will increase,and the new equilibrium price will decrease.
C) Sonny and Cher will each break the agreement.The new equilibrium quantity of songs will decrease,and the new equilibrium price will increase.
D) Sonny and Cher will each break the agreement.The new equilibrium quantity of songs will increase,and the new equilibrium price also will increase.