The U.S.market for locomotives is divided between two producers;General Electric has 70 percent of the market and General Motors has 30 percent.This market is an example of
A)a bilateral monopoly
B)monopolistic competition
C)a collusive monopoly
D)a duopoly
E)a cartel

Question

Quizplus · Accepted Answer

A duopoly is a market structure in which two firms dominate the market. In this case, General Electric and General Motors are the only two firms producing locomotives in the U.S., with GE having a 70% market share and GM having a 30% market share. Therefore, the U.S. market for locomotives is an example of a duopoly.

The USMarket for Locomotives Is Divided Between Two Producers;General Electric Has