Home | | Economics 11th std | Duopoly and Characteristics of Duopoly

Economics - Duopoly and Characteristics of Duopoly | 11th Economics : Chapter 5 : Market Structure and Pricing

Chapter: 11th Economics : Chapter 5 : Market Structure and Pricing

Duopoly and Characteristics of Duopoly

Duopoly is a special case of the theory of oligopoly in which there are only two sellers.

Duopoly

 

Duopoly is a special case of the theory of oligopoly in which there are only two sellers. Both the sellers are completely independent and no agreement exists between them. Even though they are independent, a change in the price and output of one will affect the other, and may set a chain of reactions. A seller may, however, assume that his rival is unaffected by what he does, in that case he takes only his own direct influence on the price.

 

Characteristics of Duopoly

 

1.        Each seller is fully aware of his rival’s motive and actions.

 

2.        Both sellers may collude (they agree on all matters regarding the sale of the commodity).

 

3.        They may enter into cut-throat competition.

 

4.        There is no product differentiation.

 

5.        They fix the price for their product with a view to maximising their profit.

 

Tags : Economics , 11th Economics : Chapter 5 : Market Structure and Pricing
Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail
11th Economics : Chapter 5 : Market Structure and Pricing : Duopoly and Characteristics of Duopoly | Economics


Privacy Policy, Terms and Conditions, DMCA Policy and Compliant

Copyright © 2018-2023 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.