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Unformatted text preview: All such causes create market imperfections. Oligopoly and Duopoly are the result of a small number of producers. This is Quantitative Imperfection . Economic theory finds it difficult to find a solution to oligopoly or duopoly markets. This is because of the fact that with the presence of a few producers there is bound to be stiff rivalry among producers. This may cause endless price-cutting tendencies. As a result of this stable equilibrium solution may not be possible. Such a suspicion is unfounded since in reality oligopolists and duopolists do exist and perform successfully....
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- Fall '10