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A Duopolists' Dilemma Occurs When Two Firms in a Market

Question 58

Multiple Choice

A duopolists' dilemma occurs when two firms in a market would be better off if


A) both choose the high price but instead each chooses the low price.
B) both firms act jointly as a cartel and chooses the best price.
C) one firm refuses to participate in the cartel.
D) both firms adopt price matching.

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