During the holiday shopping season, many catalog retailers offer buyers price reductions, coupons, two-for-one deals, and/or free delivery. This is because these catalog retailers operate in __________ environment.

Question

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Catalog retailers compete in a monopolistic competition environment where they offer differentiated products and use promotional activities to attract customers. This is evidenced by the price reductions, coupons, and other deals they offer to stand out from competitors. Pure competition, oligopoly, and monopoly environments are less common in catalog retailing. Marginal competition is not a recognized category of market structure.

During the Holiday Shopping Season, Many Catalog Retailers Offer Buyers