In a particular town,Xpressdata and Blazedata are the only two providers of wireless Internet service.What do Xpressdata and Blazedata constitute
A)a duopoly, whether they collude or not
B)a cartel, whether they collude or not
C)a Nash industry, whether they collude or not
D)a monopolistically competitive industry, whether they collude or not

Question

Quizplus · Accepted Answer

A duopoly is a market structure where two firms dominate the industry and have the power to influence prices and output levels. In this case, Xpressdata and Blazedata are the only providers of wireless Internet service in the town, which makes it a duopoly. The fact that they are the only two firms in the market means that they have a significant impact on the pricing and availability of their services, regardless of whether they collude or not.

In a Particular Town,Xpressdata and Blazedata Are the Only Two