Before deciding on a pricing strategy, Worldwide Widgets consults with its market intelligence team to understand what discounts the Gargantuan Gizmo Company is offering. The model that BEST fits this industry is
A) pure competition.
B) monopolistic competition.
C) an oligopoly.
D) a monopoly.

Question

Quizplus · Accepted Answer

The scenario describes a market where a few companies are aware of and react to each other's pricing strategies, which is characteristic of an oligopoly. In oligopolies, a small number of firms have a significant market share, and their decisions can affect market conditions.

Before Deciding on a Pricing Strategy, Worldwide Widgets Consults with Its