Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Monopoly Profits in Duopoly
-(Figure: Monopoly Profits in Duopoly) Look at the figure Monopoly Profits in Duopoly. Each firm faces an identical demand curve, D₁, and the market demand curve is D₂. The figure illustrates how firms can reap monopoly profits even in an industry with:

A) free entry and exit.
B) two firms.
C) monopolistic competition.
D) a four-firm concentration ratio of 50.