______ is a type of oligopoly, characterised by two primary corporations operating in a market or industry, producing the same or similar goods and services.

Question

Question

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MPPGCL JE Electrical 28 April 2023 Shift 1 Official Paper

Answer 1

The correct answer is Duopoly.

Key Points

A duopoly is a type of oligopoly where only two firms dominate the market.
These two firms produce identical or similar goods and services.
Duopolies can lead to competitive or collusive behaviors between the two firms.
Market outcomes in a duopoly can be analyzed using game theory, particularly the Cournot and Bertrand models.
Duopolistic markets often exhibit significant barriers to entry, preventing other firms from entering the market.

Additional Information

Perfect Competition
- This is a market structure characterized by a large number of small firms, homogenous products, and easy entry and exit from the market.
- In perfect competition, no single firm can influence the market price.
Monopoly
- A monopoly is a market structure where a single firm dominates the entire market.
- This firm is the sole provider of a particular good or service, with high barriers to entry preventing other firms from entering the market.
Monopsony
- In a monopsony, there is only one buyer in the market, giving this buyer substantial control over prices and terms of purchase.
- This market structure is the opposite of a monopoly, which features a single seller.