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If,in the Cournot Model of a Duopoly,the Firms Colluded Instead

Question 77

Multiple Choice

If,in the Cournot model of a duopoly,the firms colluded instead of behaving independently:


A) the outcome would be closer to the competitive equilibrium.
B) the outcome would be indeterminate.
C) firms could increase their combined profit.
D) the price will be below average cost.

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