In a particular town,Metrovision and Cableview are the only two providers of cable TV service.Metrovision and Cableview constitute a
A) duopoly,whether they collude or not.
B) cartel,whether they collude or not.
C) Nash industry,whether they collude or not.
D) monopolistically competitive market if they charge the same price.

Question

Quizplus · Accepted Answer

A duopoly is a market structure in which only two firms operate in a particular industry. It does not depend on whether they collude or not, thus making choice A the correct answer. A cartel is a group of firms that collude to act as a monopoly, which is not the case here. A Nash industry is a situation in which firms make decisions that are interdependent on each other, which is not clearly stated in the given scenario. Monopolistic competition is a market structure in which there are many competitors who offer differentiated products, so this choice is also incorrect.

In a Particular Town,Metrovision and Cableview Are the Only Two