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  2. Advantages and disadvantages of a duopoly:
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    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 ...
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    What Is The Advantages And Disadvantages Of Duopoly?

    • In some cases, duopolies will reach a Nash Equilibrium, and prices will not drop.
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    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.
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