When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) ____ structure exists in the competitive environment.
A) oligopoly
B) monopoly
C) pure competition
D) oligopolistic competition
E) monopolistic competition

Question

Quizplus · Accepted Answer

Monopolistic competition occurs when a market has many competitors, but each firm tries to differentiate its products from others through marketing strategies. This means that the firm is trying to establish a unique brand identity and product differentiation, which is a characteristic of monopolistic competition.

When a Firm Has Many Potential Competitors and Tries to Develop