Question

Give a real world example of a duopoly and a cartel.

Give a real world example of a duopoly and a cartel.

Homework Answers

Answer #1
  • Duopoly is a form of oligopoly Market in which only two firms dominate the whole market for certain goods and services. They may either produce same or similar kinds of goods and services and control the whole market.
  • A real world example of a duopoly is a Market of two dominant technological companies Apple and Microsoft.
  • Apple and Microsoft companies have always been old competitors and they dominate the whole technological Market.
  • A Cartel refers to a group of producers or firms that join the group Inorder to take important decisions on the price level to be set and various output decisions.
  • A well known and the most Important real world example of a Cartel is IATC.
  • IATC or the international air transport corporation is a cartel as various members sit together to make various pricing decisions.
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