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- Advantages and disadvantages of a duopoly:
- Higher prices: Duopolies have higher prices for consumers due to reduced market competition. It may give the firms the power to control the market price.
- Less innovation: A lack of competition limits innovation and progress. There is a lesser incentive to invest in new products or services that may disrupt their market position.
- No new competition: Duopolies may lack new firms, resulting in a lack of new products and a potentially stagnant market12.
- However, duopolies can be quite profitable due to economies of scale and lower average costs3.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Advantages and disadvantages of a duopoly
- 1. Higher prices Duopolies have higher prices for consumers due to reduced market competition. In addition, it may give the firms the power to control the market price. Note ...
www.wallstreetoasis.com/resources/skills/economi…What Is The Advantages And Disadvantages Of Duopoly?
- In some cases, duopolies will reach a Nash Equilibrium, and prices will not drop.
business-finance.blurtit.com/710665/what-is-the-ad…Duopolies are usually quite profitable industries and are likely to have an outcome similar to monopoly – with price above marginal cost and a degree of allocative inefficiency. The drawbacks of higher prices may be offset by economies of scale and lower average costs.www.economicshelp.org/blog/glossary/duopoly/ - People also ask
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