The Gap makes their products appear to be slightly different from those of their competitors by tactics such as brand names. Their degree of competition is
A) pure competition.
B) oligopoly.
C) monopoly.
D) monopolistic competition.
E) none of these.

Question

Quizplus · Accepted Answer

The use of tactics like brand names suggests that The Gap is trying to differentiate their products from those of their competitors. This is a characteristic of monopolistic competition, where firms try to make their products appear slightly different from others on the market. In pure competition, there are no differences between products, and in a monopoly, there is only one seller with no competitors. In an oligopoly, there are only a few large firms dominating the market.

The Gap Makes Their Products Appear to Be Slightly Different