If an Industry consists of two large firms,it is known as a(n)
A)monopoly
B)perfect competition
C)monopolistic competition
D)natural monopoly
E)duopoly

Question

Quizplus · Accepted Answer

A duopoly is a market structure in which there are only two large firms dominating the industry. This is different from a monopoly where one firm dominates the industry and from perfect competition where there are many small firms with no dominant player. Monopolistic competition involves many small firms competing in a differentiated market, while a natural monopoly is a situation where it is most efficient for one firm to produce the entire output of the market.

If an Industry Consists of Two Large Firms,it Is Known