The simplest type of oligopoly is
A)monopoly.
B)duopoly.
C)monopolistic competition.
D)oligopolistic competition.

Question

Quizplus · Accepted Answer

A duopoly is a market structure in which two firms dominate the market for a particular product or service. It is the simplest form of oligopoly as it involves only two firms competing against each other. Monopoly and monopolistic competition are not forms of oligopoly as they respectively refer to a market structure with only one dominant firm and a market structure with many small firms with differentiated products. Oligopolistic competition, on the other hand, involves a small number of large firms dominating the market.

The Simplest Type of Oligopoly Is