Duopoly Firms' Cost Strategies Could Harm or Benefit Consumers
The article explores how companies in a competitive market can make the most profit when their costs change. It shows conditions for both companies to enter and stay in the market while maximizing profits. Different strategies are suggested for handling changing costs, some beneficial and some risky. The study reveals that the market can go through cycles where companies switch between being monopolies and duopolies. Lastly, the article introduces new ideas for monopolies to come together under specific conditions.