Which of the following statements is correct?
A)If duopolists successfully collude, then their combined output will be equal to the output that would be observed if the market were a monopoly.
B)Although the logic of self-interest decreases a duopoly's price below the monopoly price, it does not push the duopolists to reach the competitive price.
C)Although the logic of self-interest increases a duopoly's level of output above the monopoly level, it does not push the duopolists to reach the competitive level.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

When duopolists collude, they aim to maximize joint profits like a monopoly, so their output matches monopoly output. Self-interest leads to higher output and lower prices than monopoly, but not to competitive levels.

Which of the Following Statements Is Correct