Exhibit 11-4 -Refer to Exhibit 11-4. If Both Firms Price at the Price

Multiple Choice

Exhibit 11-4
-Refer to Exhibit 11-4. If both firms price at the monopoly price,

A) combined profits would increase if one firm charged the competitive price.
B) both firms will be tempted to charge the competitive price.
C) only one firm will be tempted to charge the competitive price.
D) neither firm will want to deviate from the monopoly price.
E) combined profits will be lower than if both firms charged the competitive price.