Question

An agreement between two duopolists to function as a monopolist usually breaks down because A. each duopolist wants a larger share of the market to capture more profit. B. each duopolist wants to charge a higher price than the monopoly price. C. they cannot agree on the output that a monopolist would produce. D. they cannot agree on the price that a monopolist would charge.

Answer 1

The answer to this question is A each duopolist wants a larger share of the market to capture more profit.

Step-by-step explanation:

A duopoly is a type of imperfect market in which the production of goods and services is owned and controlled by two producers. On the other hand, a monopolist is a market situation whereby there is only one producer or supplier of a particular type of commodity that has no substitute.

An agreement between two duopolist to function as a monopolist will usually break down because each duopolist wants a larger share of the market to capture more profit.

Hence the answer is A