Question

A duopoly is a market where ______.

Options

• Many small firms sell the product

• Only one firm sells the product

• Exactly two dominant firms sell the product

• Two firms and many small firms share the market equally

Answer 1

A duopoly is a market where exactly two dominant firms sell the product.

Explanation: 

In a duopoly, there are two major firms that dominate the market and control most of the supply.