An industry with two firms is generally termed:
A) monopoly.
B) monopolistic competition.
C) duopoly.
D) perfect competition.

Question

Quizplus · Accepted Answer

A duopoly is an industry with only two dominant firms that control the majority of the market share. This is different from a monopoly, which is a market with only one dominant firm, and from monopolistic competition, which is a market with many firms that sell similar but differentiated products. Perfect competition, on the other hand, is a market where many firms compete against each other in a pricing environment with homogeneous products.

An Industry with Two Firms Is Generally Termed