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Consider the Diagram Below,which Shows the Market Demand Curve for a Particular

Question 136

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Consider the diagram below,which shows the market demand curve for a particular product.Suppose this market is served by two duopolists who each face the marginal cost curve shown in the diagram.The marginal revenue curve that a monopolist would face in this market is also shown.Which of the following statements is true? Consider the diagram below,which shows the market demand curve for a particular product.Suppose this market is served by two duopolists who each face the marginal cost curve shown in the diagram.The marginal revenue curve that a monopolist would face in this market is also shown.Which of the following statements is true?   A)  The total output in this market will likely be 2 units when the market is served by a duopoly. B)  The price in this market will likely be $6 when the market is served by a duopoly. C)  The total revenue to each firm will likely be more than $16 when the market is served by a duopoly. D)  The total output in this market will likely be less than 4 units when the market is served by a duopoly.


A) The total output in this market will likely be 2 units when the market is served by a duopoly.
B) The price in this market will likely be $6 when the market is served by a duopoly.
C) The total revenue to each firm will likely be more than $16 when the market is served by a duopoly.
D) The total output in this market will likely be less than 4 units when the market is served by a duopoly.

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