Question

Which of the following is the best example of a duopoly?

Options

• Many local shops selling vegetables

• Coca‑Cola and Pepsi in the global cola market

• Hundreds of small firms making clothes

• A single firm supplying electricity

Answer 1

Coca‑Cola and Pepsi in the global cola market

Explanation: 

In the global soft drink market, Coca‑Cola and Pepsi are two dominant firms, so this is a real-life example of duopoly.