If competitive market circumstances are such that there are a lot of sellers who use some price competition,some product differentiation,and the purpose of advertising is to differentiate the firm's products from competitors,then _____ must exist in the industry.
A)a pure monopoly
B)an oligopoly
C)monopolistic competition
D)pure competition

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by a large number of sellers, some degree of product differentiation, and some competition on price. In such a market, firms use advertising to promote their unique features and differentiate themselves from their competitors. This scenario does not align with the characteristics of a pure monopoly, oligopoly, or pure competition.

If Competitive Market Circumstances Are Such That There Are a Lot