If there is a collusive agreement in a duopoly to maximize profit, then the price will
A) equal the marginal cost of production.
B) equal the average total cost of production.
C) be the same as the price set by a monopoly.
D) be the same as the price set by a competitive industry.
Question 2
Marginal social cost is equal to the
A) sum of marginal private cost and marginal external cost.
B) sum of marginal private cost and marginal private benefit.
C) marginal cost incurred by the producer of the good.
D) marginal cost imposed on others.
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