Which of the Following Is Likely to Occur If Two

Multiple Choice

Which of the following is likely to occur if two firms in a duopoly market decide to collude and produce the same output and charge the same price?

A) Each firm will receive twice the profit they earned before the agreement.
B) Together the firms will produce less than the monopoly output.
C) Each firm will receive exactly half of the monopoly profit.
D) None of the firms will have an incentive to charge a lower price.