- A Duopoly is an oligopoly with only two members. It is the simplest type of oligopoly.
Competition, Monopolies and Cartels :
The Duopoly may agree on a monopoly outcome :
a. Collusiaon
An agreement among firms in a market about quantities to produce or price to charge.
b. Cartel
A group of firms acting in unison.
Although oligopolists would like to form cartels and earn monopoly profit, often that is not possible. Antitrust law prohibit explicit agreements among oligopolists as a matter of public policy.
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