The duopoly market output is:
A)lower than both the monopoly output and the perfectly competitive output.
B)greater than both the monopoly output and the perfectly competitive output.
C)greater than the monopoly output but lower than the perfectly competitive output.
D)lower than the monopoly output but greater than the perfectly competitive output.

Question

Quizplus · Accepted Answer

In a duopoly market, there are only two firms that dominate the market. These two firms have some control over the price of the product. However, they are still competing with each other. As a result, the output in a duopoly market is greater than the monopoly output but lower than the perfectly competitive output. Therefore, choice C is the correct answer.

The Duopoly Market Output Is