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Author Question: The sugar industry in Canada is effectively a duopoly with two large firms competing with each other ... (Read 69 times)

jacob816

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on: Oct 12, 2022
The sugar industry in Canada is effectively a duopoly with two large firms competing with each other for market share. Suppose the two firms collude and successfully restrict joint output to that of a profit-maximizing monopolist. As a result, they each realize an increase in their profits. Why would this collusive agreement be difficult to sustain?
◦ Because the firm with the lower long-run average costs will be able to capture all sales, driving the second firm out of the market.
◦ Because each firm has an incentive to break the agreement by further restricting output in order to increase the price, thereby increasing their own profits.
◦ Because a non-cooperative outcome is inevitable in which output is further restricted and each firm's profit is reduced.
◦ Because each firm has an incentive to break the agreement by increasing output in order to increase their own profits.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by jacob816 on Oct 12, 2022

Asfa

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Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jacob816

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Reply 2 on: Oct 12, 2022
:D TYSM

Dnite

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Reply 3 on: Yesterday
Excellent

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