Question

Which statement about duopoly and oligopoly is correct?

Options

• Duopoly is the same as perfect competition

• Duopoly is a special case of oligopoly

• Oligopoly is a special case of duopoly

• A duopoly always has more than two firms

Answer 1

Duopoly is a special case of oligopoly

Explanation: 

Oligopoly means “a few firms”, and duopoly is a special type with exactly two firms.