Question

Which of the following is an example of a duopoly​ market?

A. ​Boeing, Airbus, and Bombardier are the three aircraft manufacturing companies in the world.
B. DeBeers controls 70 percent of the market share in diamonds and the rest is shared by a few other companies.
C. The city of Portland has three major cab service companies.
D. Visa and MasterCard exercise control over the electronic payment processing market in the world.

Answer 1

The correct answer is letter "D": ​Visa and MasterCard exercise control over the electronic payment processing market in the world.

Step-by-step explanation:

A duopoly takes place when two companies dominate most part of a market. It is a type of oligopoly since small firms are under control of the market. Though, when the two companies collude on prices, the oligopoly has the same characteristic as a monopoly.

In that case, Visa and Mastercard are a duopoly since they control electronic payments on Europe and the U.S.

Answer 2

D. Visa and MasterCard exercise control over the electronic payment processing market in the world

Step-by-step explanation: