Which of the following statements is correct?
A)If duopolists successfully collude, then their combined output will be less than the output that would be observed if the market were a monopoly.
B)The logic of self-interest decreases a duopoly's price below the monopoly price, and it pushes the duopolists to reach the competitive level of output.
C)The logic of self-interest increases a duopoly's level of output above the monopoly level, and it pushes the duopolists to reach the competitive price.
D)If duopolists successfully collude, then their combined output will be equal to the output that would be observed if the market were a monopoly.

Question

Quizplus · Accepted Answer

If duopolists successfully collude, they act as a single monopolist to maximize their combined profits, leading to a situation where their combined output is equal to that of a monopoly.

Which of the Following Statements Is Correct