Author Question: Under a Cournot duopoly, the collusion curve represents: A) all possible allocations of the pure ... (Read 51 times)

vinney12 · **on:** Jul 1, 2018

Under a Cournot duopoly, the collusion curve represents:

A) all possible allocations of the pure monopoly quantity among the two firms in the duopoly.
B) all possible allocations of the pure monopoly quantity that would be possible if the two firms in the duopoly did not cooperate.
C) all optimal price-quantity outcomes for a cartel rather than a Cournot duopoly.
D) the potential profits to be earned by firms in a collusive cartel.

Question 2

Suppose the market in Figure 9.4 is currently in equilibrium. If the government establishes a price floor of 40, consumer surplus will

A) fall by 50.
B) fall by 350.
C) remain the same.
D) rise by 50.
E) rise by 350.