For a duopoly,the highest price is charged when the duopoly achieves
A) the competitive outcome.
B) the monopoly outcome.
C) an outcome between the competitive outcome and the monopoly outcome.
D) its noncooperative Nash equilibrium.
E) Both answers A and D are correct because both refer to the same price.

Question

Quizplus · Accepted Answer

In a duopoly, the highest price is charged when the duopoly achieves the monopoly outcome. This is because in a monopoly, there is no competition and the firm can charge the highest possible price without fear of losing customers to competitors.

For a Duopoly,the Highest Price Is Charged When the Duopoly