There are more than 100 companies that manufacture natural and artificial flavorings 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 in their advertising by specializing in one or two types of foods for which they provide flavorings.Some use their distribution strategies as a means of differentiating themselves from their competition.This industry is MOST LIKELY an example of
A)pure monopoly.
B)oligopoly.
C)monopolistic competition.
D)bilateral monopoly.
E)monopolistic oligopoly.

Question

Quizplus · Accepted Answer

The description of the industry indicates that there are many manufacturers producing similar products, but they differentiate themselves through advertising and distribution strategies. This is characteristic of monopolistic competition, where firms compete with differentiated products but still face competition from other firms producing similar products. It is not a pure monopoly because there are many firms in the industry, and it is not an oligopoly because there are more than just a few dominant players.

There Are More Than 100 Companies That Manufacture Natural and Artificial