Shimmer Sisters, a popular nail polish and cosmetics company, is gaining popularity among teens and young professionals. Differentiating itself from the sea of companies that compete for the same business, it focuses on creating products using trending color palettes and the finest ingredients. Shimmer Sisters clearly operates in an oligopolistic environment.

Question

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Shimmer Sisters competes against several companies. Monopolistic competition refers to a large number of sellers who produce very similar products. Buyers perceive the products to be different due to the firms' ability to differentiate themselves from each other. An oligopoly is a market in which just a few sellers dominate the market.

Shimmer Sisters, a Popular Nail Polish and Cosmetics Company, Is