Even though four firms can profitably sell hotdogs downtown,the government licenses only two firms.This market is a

Name: Even though four firms can profitably sell hotdogs downtown,the government licenses only two firms.This market is a
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Question

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This market is a legal duopoly because the government's licensing action restricts the number of firms that can operate, creating a duopoly through legal means rather than through natural market conditions.

Even Though Four Firms Can Profitably Sell Hotdogs Downtown,the Government