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There is a medium between monopoly and perfect competition in which only a few firms exist in a mark

There is a medium between monopoly and perfect competition in which only a few firms exist in a mark

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There is a medium between monopoly and perfect competition in which only a few firms  exist in a market. None of these firms faces the entire demand curve in the way a  monopolist would, but each does have some power to set prices. A small collection of  firms who dominate a market is called an oligopoly. A duopoly is a special case of an  oligopoly, in which only two firms exist.  Duopolies  We will begin our discussion with an investigation of duopolies. For the following  duopoly examples, we will assume the following:  1. The two firms produce homogeneous and indistinguishable goods.  2. There are no other firms in the market who produce the same or substitute  goods.  3. No other firms can or will enter the market.  4. Collusive behavior is prohibited. Firms cannot act together to form a cartel.  5. There exists one market for the produced goods. 
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