The concentration ratio in a duopoly industry is likely to be lower than industries characterized by monopolistic competition.

Question

Quizplus · Accepted Answer

In a duopoly, the concentration ratio is typically very high because the market is dominated by only two firms, whereas in monopolistic competition, many firms compete and no single firm has a significant market share, leading to a lower concentration ratio.

The Concentration Ratio in a Duopoly Industry Is Likely to Be