The competitive situation of many national,regional,and private label brands of peanut butter is likely one of a(n):
A)pure monopoly.
B)oligopoly.
C)monopolistic competition.
D)pure competition.

Question

Quizplus · Accepted Answer

The competitive situation of many national, regional, and private label brands of peanut butter is likely one of monopolistic competition, where there are many firms selling differentiated products that are close substitutes for each other. This means that consumers have a choice between different brands of peanut butter, but each brand has some unique characteristics or features that make them slightly different from each other, such as texture, taste, or price. In monopolistic competition, firms have some degree of market power, since they can differentiate their products and attract a loyal customer base. However, this market power is limited by the availability of close substitutes and the ease of entry for new firms. Therefore, it is not a pure monopoly, oligopoly, or pure competition.

The Competitive Situation of Many National,regional,and Private Label Brands of Peanut