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In a Collusive Agreement Between Two Duopolists in an Oligopoly

Question 86

Multiple Choice

In a collusive agreement between two duopolists in an oligopoly, each firm has an incentive to cheat on the agreement because the firm's price

A) exceeds its marginal revenue.
B) exceeds its marginal cost.
C) is less than its average total cost.
D) None of the above answers is correct.

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