Question

Customers can "self-inflict" this type of competition when a brand name is perceived as unique and highly valued, and a retailer controls its sale.

1) Pure competition
2) Pure monopoly
3) Monopolistic competition
4) Oligopolistic competition
5) Perfect competition

Answer 1

Monopolistic competition is a type of imperfectly competitive market where many firms compete by selling distinctive products. Each firm has a mini-monopoly on its particular style or brand name, but also competes with other styles and brands.

Step-by-step explanation:

Customers can "self-inflict" this type of competition when a brand name is perceived as unique and highly valued, and a retailer controls its sale. This type of competition is called monopolistic competition. In monopolistic competition, many firms compete against each other by selling products that are distinctive in some way. Each firm has a mini-monopoly on its particular style or brand name, but also competes with other styles and brands.