A Market with Only Two Firms Is Called a

question 92

Multiple Choice

A market with only two firms is called a

• A) duopoly.
• B) two-firm monopolistic competition.
• C) two-firm monopoly.
• D) cartel.
• E) two-firm quasi monopoly.

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Definitions:

Total Surplus

The combined measure of consumer surplus and producer surplus in a market, representing the total benefits to society from the production and consumption of goods and services.

Equilibrium

A state where market supply and demand balance each other, and as a result, prices become stable.

Pumpkin Market

The economic environment or system where pumpkins are bought, sold, or traded.

Equilibrium Price

The cost at which the amount of a product available matches the amount of the product sought after.