There are over 100 companies that manufacture natural and artificial flavourings used to enhance the taste of food before it is sold to consumers.Many of these manufacturers are regional operations.Many differentiate themselves from the competition by specializing in one or two types of foods for which they provide flavourings.Some use their distribution strategies as a means of differentiating themselves from their competition.This industry is most likely an example of:

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The description of the industry suggests that there are multiple companies producing similar but slightly differentiated products and using various strategies to differentiate themselves from their competition. This is a characteristic of monopolistic competition. A pure monopoly would involve only one company controlling the market, while an oligopoly would involve a small number of companies with significant market power. A bilateral monopoly involves a single buyer and a single seller negotiating a transaction, which does not apply here.

There Are Over 100 Companies That Manufacture Natural and Artificial