A Duopoly Occurs When

question 256

Multiple Choice

A duopoly occurs when

• A) there are only two producers of a particular good competing in the same market.
• B) there are two producers of two goods competing in an oligopoly market.
• C) there are numerous producers of two goods competing in a competitive market.
• D) the one producer of two goods sells the goods in a monopoly market.

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Definitions:

Contribution Margin

The amount of revenue from sales that remains after variable costs are subtracted, useful in determining the profitability of individual products or services.

Annual Fixed Costs

The total fixed costs incurred by a business in a year, including rent, salaries, and insurance, which do not vary with production volume.

Financial Advantage

The benefit gained in a financial context that puts an individual, company, or country in a better position than others.

Fixed Production Costs

Expenses that do not change with the level of production, such as rent, salaries, and equipment leasing.