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An oligopoly with exactly two dominant firms is also called a:
ADuopoly
BMonopoly
CMonopsony
DPolygopoly
Answer & Solution
Correct answer: A. Duopoly
1. Oligopoly means a small number of firms rather than any fixed count.
2. The Boeing and Airbus case is described as an oligopoly for large passenger aircraft.
3. It is also called a duopoly because just two firms dominate.
4. A monopoly would mean a single seller instead of two.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 10 'Monopolistic Competition and Oligopoly', sections 10.1-10.2_
Related questions
Compared with a cartel, the Boeing and Airbus duopoly is held together by:The prisoner's dilemma applies to oligopoly because firms face a choice between:Monopolistic competition and oligopoly are grouped together because both are:The kinked demand curve makes an oligopolist reluctant to raise price because rivals will:A cartel is unstable because each member firm has an incentive to:Products can be differentiated by physical features, location, intangible qualities and:A cartel agreement aims to produce which level of output?The barrier to entry behind the Boeing and Airbus oligopoly comes from economies of scale