Under which of the following market conditions are sellers MORE likely to develop differentiated offers for different customer segments and, in addition to price, freely use branding, advertising and personal selling to set their offers apart?
A) monopolistic competition
B) pure competition
C) oligopolistic competition
D) free market
E) monopoly

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by a large number of buyers and sellers offering differentiated products, allowing them to use branding, advertising and personal selling to set their offers apart. In contrast, pure competition and oligopolistic competition have little room for differentiation and rely heavily on price competition, and a monopoly has no competitors to differentiate from.

Under Which of the Following Market Conditions Are Sellers MORE