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# Analysis of Oligopoly and Duopoly This document appears to be handwritten notes on economics, specifically analyzing the concepts of oligopoly and duopoly. It discusses the following points: * **Why do firms in oligopolies/duopolies engage in collusion (or agreements)?** The notes suggest that...

# Analysis of Oligopoly and Duopoly This document appears to be handwritten notes on economics, specifically analyzing the concepts of oligopoly and duopoly. It discusses the following points: * **Why do firms in oligopolies/duopolies engage in collusion (or agreements)?** The notes suggest that firms might agree to set prices or output levels to avoid the negative impacts of excessive competition. This strategy, when successful, gives higher profits to the firms compared to scenarios of fierce competition or price wars. * **Preference for Collusion:** The notes indicate that a collusive situation in oligopoly where firms agree on production is preferred to other situations because it leads to less pressure for each company to cut prices, which ultimately benefits consumers through higher prices. * **Potential for Exploitation:** It mentions that an understanding between firms or firms cooperating to limit supply and raise prices might negatively impact consumers due to higher prices when compared to an ideal competitive market. * **The importance of cooperation.** The notes emphasize that firms benefit when cooperating to gain more profit from shared consumers, although this cooperation might not always be legal. * **The role of the state (or government).** The mention of a "procedure of clemency" (2016) suggests that there's a process where firms who admit to participating in price-fixing agreements may receive lenient treatment from regulatory authorities. * **Anti-trust Regulations:** The notes mention that secret agreements between firms are not always favored and that anti-trust laws are in place to prevent such activities, often to benefit the consumer. * **Monitoring of sales (price fixing and output strategies):** The document hints at government/regulatory agency measures in place to keep track of firms' behavior. The document contains equations and analysis related to these concepts. However, the handwritten nature and the need for better understanding of specialized economic terms make it hard to provide a complete detailed summary without more context.