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)monopolistic competition.
B)a collusive monopoly.
C)a duopoly.
D)a cartel.

Question

Quizplus · Accepted Answer

A duopoly is a market structure in which two firms dominate the market for a particular product or service. In this case, General Electric and General Motors are the only two producers in the U.S. market for locomotives, hence it is a duopoly.

The USMarket for Locomotives Is Divided Between Two Producers: General Electric