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Figure: Monopoly Profits in Duopoly
-(Figure: Monopoly Profits in Duopoly) Use Figure: Monopoly Profits in Duopoly.Given the duopoly industry illustrated in the figure,if each firm acted on the belief that it faced demand curve D₂ and acted without consideration of the other,each firm would attempt to maximize economic profits by producing quantity _____ and setting price equal to _____.

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Figure: Monopoly Profits in Duopoly

-(Figure: Monopoly Profits in Duopoly) Use Figure: Monopoly Profits in Duopoly.Given the duopoly industry illustrated in the figure,if each firm acted on the belief that it faced demand curve D₂ and acted without consideration of the other,each firm would attempt to maximize economic profits by producing quantity _____ and setting price equal to _____.

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If each firm acts independently and believes it faces demand curve D2, it will produce at quantity Q2 where marginal cost equals marginal revenue and set the price at P2.

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