Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Monopoly Profits in Duopoly
-(Figure: Monopoly Profits in Duopoly) The figure Monopoly Profits in Duopoly shows how an industry consisting of two firms that face identical demand curves (D₁) can collude to increase profits. The market demand curve is D_2. If the firms collude to share the market demand equally, then each firm will act as if its demand curve is given by:

A) D₁.
B) D₂.
C) MR₁.
D) 2 × D₁.