Use the Following to Answer Question(s): Monopoly Through Collusion

Multiple Choice

Use the following to answer question(s) : Monopoly Through Collusion

-(Exhibit: Monopoly Through Collusion) Given the duopoly industry illustrated in the exhibit, if each firm acted on the belief that it faced demand curve D₂ and acted without consideration of the other, each firm would attempt to maximize economic profits by producing quantity _______ and setting price equal to _______ .

A) Q₄; P₁
B) Q₄; P₂
C) Q₁; P3
D) Q₂; P₂