There are more than 100 companies that manufacture natural and artificial flavorings used to enhance the taste of food before it is sold to consumers. Some of these manufacturers differentiate themselves from the competition in their advertising by specializing in one or two types of foods for which they provide flavorings. Others use their distribution strategies as a means of differentiating themselves. This industry is most likely an example of
A) pure monopoly.
B) oligopoly.
C) monopolistic competition.
D) bilateral monopoly.
E) monopolistic oligopoly.

Question

Quizplus · Accepted Answer

The industry described is most likely an example of monopolistic competition, where many companies sell products that are differentiated from one another but are not perfect substitutes, allowing for competition based on factors like specialization and distribution strategies.

There Are More Than 100 Companies That Manufacture Natural and Artificial