Besides a slowdown in the general economy, Coop's Consulting faces threats of competition from several other companies that provide engineering consulting services. In order to gain more business, Cooper tries to convince potential clients that his company offers better service than the competition. He has advertised heavily in professional magazines, often quoting some of his highly satisfied clients. The market Coop's Consulting operates in is an example of
A) perfect competition.
B) monopoly.
C) oligopoly.
D) monopolistic competition.

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by many firms competing by offering differentiated products. Coop's Consulting use of advertising indicates that it is trying to differentiate its product from the many competitors it faces in the market.

Besides a Slowdown in the General Economy, Coop's Consulting Faces