Suppose that thierry and abdul are duopolists. thierry is producing 700 units of output, and abdul is producing 500 units of output. when abdul produces 500 units, thierry maximizes profit by producing 700 units. when thierry produces 700 units of output, abdul maximizes profit by producing 500 units. thierry and abdul are

Thierry and Abdul are at a Nash Equilibrium. In this situation as explained in the question, Thierry and Abdul are duopolists (i. e. they both have dominant control over the market), so they both decide, in their advantage, to connive and set their individual units of output at levels that will maximize their joint profits.