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Figure: Monopoly Profits in Duopoly
-(Figure: Monopoly Profits in Duopoly) Use Figure: Monopoly Profits in Duopoly.If the two firms in the figure colluded to split production evenly and to maximize their joint profits,the market price they set would be _____,and each firm's economic profit would be _____.(Assume that the market demand curve is D2. )
A) P2;given by the area of the rectangle bounded by P1P2EF = FEBG
B) P1;P1P3AF
C) P3;given by the area of the rectangle bounded by 0P3AQ1
D) P2;given by the area of the rectangle bounded by P1P2BG
Correct Answer:
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Q62: Use the following to answer question:
Figure: Monopoly
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Figure: Monopoly
Q64: Use the following to answer question:
Figure: Collusion
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Q68: Use the following to answer question:
Figure: Monopoly
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Figure: Monopoly
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