The market outcome in a duopoly with homogeneous products is similar to that in ________.

Question

Quizplus · Accepted Answer

In a duopoly with homogeneous products, there are only two firms producing identical products, similar to a perfectly competitive market where there are many small firms producing homogeneous products. In both cases, firms are price takers, meaning they cannot influence the market price and must accept it. Therefore, the market outcome in a duopoly with homogeneous products is similar to that in a perfectly competitive market.

The Market Outcome in a Duopoly with Homogeneous Products Is