If duopolists individually pursue their own self-interest when deciding how much to produce, the price they are able to charge for their product will be:
A)less than the monopoly price
B)greater than the monopoly price
C)possibly less than or greater than the monopoly price
D)equal to the perfectly competitive market price

Question

Quizplus · Accepted Answer

When duopolists act independently to maximize their own profits, they tend to produce a greater total quantity than a single monopolist would. This increased supply, in the absence of collusion, leads to a lower price than the monopoly price.

If Duopolists Individually Pursue Their Own Self-Interest When Deciding How