There are over 100 companies that manufacture natural and artificial flavourings used to enhance the taste of food before it is sold to consumers. Many of these manufacturers are regional operations. Many differentiate themselves from the competition by specializing in one or two types of foods for which they provide flavourings. Some use their distribution strategies as a means of differentiating themselves from their competition. This industry is most likely an example of:

Question

Quizplus · Accepted Answer

The description of this industry indicates that there are many companies manufacturing similar products, each with their own unique selling points (specializing in certain types of foods, use of distribution strategies), which suggests it is an example of monopolistic competition.

There Are Over 100 Companies That Manufacture Natural and Artificial