Suppose That the Duopolists Competing in Cournot Fashion Agree to Produce

Multiple Choice

Suppose that the duopolists competing in Cournot fashion agree to produce the collusive output.Given that firm two commits to this collusive output, it pays firm one to

A) cheat by producing a higher level of output.
B) cheat by producing a lower level of output.
C) cheat by raising prices.
D) none of the statements associated with this question are correct.