If two duopolists can collude successfully, then both will
A) price at marginal cost.
B) price below average total cost.
C) lower their economic profits.
D) earn greater profits than if they did not collude.

Question

Quizplus · Accepted Answer

Collusion between duopolists allows them to act as a monopoly, setting prices above marginal cost to maximize joint profits, leading to higher profits than if they competed independently.

If Two Duopolists Can Collude Successfully, Then Both Will