Ralph Moore enjoys soft drinks. He prefers the Seven-Up lemon and lime beverage. He has heard rumours that the Seven-Up Company will be bought out by one of the
Industries two leading and market dominant competitors. Further, he has heard that if that happens, the Seven-Up brand soft drink will be eliminated since it competes with the competitor's main lemon and lime offering. What Ralph is experiencing are
Developments that are most likely to take place within which type of competitive environment?
A)monopolistic competition
B)oligopoly
C)pure competition
D)monopoly

Question

Quizplus · Accepted Answer

Ralph is experiencing developments that are most likely to take place within an oligopoly competitive environment. In an oligopoly, there are only a few dominant firms that control the market and can easily influence prices and market trends. This makes it easier for a dominant firm to eliminate a competing brand, especially if it overlaps with their own product offerings.

Ralph Moore Enjoys Soft Drinks