Figure 12.2 shows demand, marginal revenue, and costs of a duopolist. Suppose that the two duopolists have the same costs. If the two firms form a cartel and charge the profit maximizing monopoly price, then compared to perfect competition, each firm's profit will be ________ and the total output level will be ________.
A. greater; greater
B. greater; smaller
C. smaller; greater
D. smaller; smaller
Answer: B
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