Question: help me solve this Competing for years by simultaneously choosing quantity, the only two firms in an industry meet in a dark alley and decide
help me solve this
Competing for years by simultaneously choosing quantity, the only two firms in an industry meet in a dark alley and decide to collude. Both firms miraculously produce their goods with absolutely no costs. Which of the following statements are true in a one-period world? Choose one or more: (J) A. The collusive total output is larger than if the firms behaved as firms in perfect competition. |) B. Firm 1 prefers to produce more than its agreed-upon quota if it believes firm 2 will continue to produce its agreed-upon quota. LJ) C. The collusive total output is smaller than if the firms behaved as Cournot duopolists. LJ D. Profits are greater in the collusive equilibrium than in Cournot competitionStep by Step Solution
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