Tag: consumers

A duopoly is really a situation where two firms control almost all of the marketplace for something or service.Duopolies could be surprisingly competitive.In the event that you remember that the cost of something or service is set solely by the best losing bid price and the cheapest losing ask price, you'll understand why a duopoly could be so competitive.Numerous inefficient competitors could have minimal affect on prices over time unless someone (the government or perhaps a band of idiotic investors) is ready to continually finance unprofitable operations within an unprofitable industry (think airlines)...

Trade barriers are artificial disincentive to export or import traders.Exemplory case of trade barriers are tariff, quota and unnecessary import/export license requirements slapped against foreign traders to favor local traders.Traders who have problems with these trade barriers are imposed additional costs that raises their trade prices, thus, it'll be hard to allow them to compete fairly on pricing issues...