A duopoly is a market structure in which there are only two firms or sellers. In a duopoly, each firm has some control over the price of the goods or services they offer, because the other firm is the only other option for consumers. This can lead to a situation known as oligopoly, in which the firms are able to collude or cooperate to increase prices and reduce competition.

Duopolies can be found in various industries, such as telecommunications, where there are often only two major providers. Duopolies can be regulated by government antitrust (competition) laws to prevent the firms from engaging in anticompetitive behaviour.

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