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Figure: Monopoly Profits in Duopoly
-(Figure: Monopoly Profits in Duopoly) Look at the figure Monopoly Profits in Duopoly. Two firms could engage in _____ and reap monopoly profits.
A) game theory
B) the prisoners' dilemma
C) collusive behavior
D) measuring the four-firm concentration ratio

Question

Use the following to answer questions:
Figure: Monopoly Profits in Duopoly 
-(Figure: Monopoly Profits in Duopoly) Look at the figure Monopoly Profits in Duopoly. Two firms could engage in _____ and reap monopoly profits.
A) game theory 
B) the prisoners' dilemma 
C) collusive behavior 
D) measuring the four-firm concentration ratio

Quizplus · Accepted Answer

Collusive behavior involves firms working together to set prices or output levels to maximize joint profits, similar to a monopoly.

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