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:

Industry Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in an industry.

Marginal Revenue

The extra revenue received from selling an additional unit of a product or service.

Profit-Maximizing

A process or strategy aiming to achieve the highest possible profits from business operations.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as output quantity changes, typically downward sloping for firms in competitive markets.