Question

uppose that in the small town, Prairie, there are only two cable providers. What type of market structure does the local cable market have? monopolistic competition perfect competition duopoly monopoly

Answer 1

Answer:

The correct answer is letter "C": duopoly.

Explanation:

Duopolies are the extension of oligopolies in which two companies dominate a market. In case the two companies collude to set a price for the products or services they provide, a duopoly becomes an oligopoly. However, that practice is forbidden by U.S. antitrust laws. Airbus and Boeing represent a duopoly in the aircraft market.