A duopoly is a form of

A. oligopoly.

B. monopolistic competition.

C. perfect competition.

D. monopoly.

• A duopoly is a form of A. oligopoly.

Exactly two firms in a market characterize a duopoly, which falls under an oligopoly market structure. An oligopoly is a market structure characterized by several firms' existence that dominates the market. The few firms dominating the market cannot bar each other from gaining influence in the market. In an oligopoly, firms may form illegal collusions to determine the prices of commodities and the level of output to maximize profits. In oligopolies, there is also interdependence amongst the existing firms.