In a duopoly if the firms have agreed to jointly maximize profits, then each firm can increase its current individual profits by producing more.

Question

Quizplus · Accepted Answer

If the firms have agreed to jointly maximize profits, then they are acting as a single monopolist. In this case, each firm can increase its current individual profits by producing more, as long as the other firm does not also increase its production.

In a Duopoly If the Firms Have Agreed to Jointly