Asked by Lunatic Kitten on Jul 15, 2024

verifed

Verified

If one firm left a duopoly market where the firms did not cooperate then

A) price and quantity would rise.
B) price would rise and quantity would fall.
C) quantity would rise and price would fall.
D) quantity and price would fall.

Duopoly Market

A market structure where two companies own all or nearly all of the market for a given product or service.

Quantity Rise

An increase in the amount of goods or services produced or supplied.

Price Rise

An increase in the cost of goods or services, commonly referred to as inflation in economic contexts.

  • Comprehend the principle and consequences of oligopoly within market structures.
  • Identify the effects of mergers and acquisitions on the configuration of the market and its results.
verifed

Verified Answer

DW
Daljeet WadhwaJul 17, 2024
Final Answer :
B
Explanation :
In a duopoly where firms do not cooperate, if one firm leaves the market, the remaining firm becomes a monopoly. This typically leads to higher prices and lower quantities as the monopolist maximizes profit by reducing supply to increase price.