187k views
5 votes
Daily needs and smart saves are two retailers in Canada. They compete with each other using similar marketing strategies. Which form of competition is seen between these two retailers?

1) Monopolistic competition
2) Oligopolistic competition
3) Perfect competition
4) Monopoly

User Jlengrand
by
9.2k points

1 Answer

3 votes

Final answer:

Daily needs and smart saves in Canada show monopolistic competition as they are multiple firms selling similar but distinct products.

Step-by-step explanation:

Between Daily needs and smart saves, two retailers in Canada employing similar marketing strategies, the form of competition exhibited is monopolistic competition.

This type of market structure involves a large number of firms that compete with each other by selling products that are distinct but not identical.

An example of monopolistic competition can be observed in large shopping malls like the Mall of America, where various stores sell clothing with different styles or specialty items – all competing for consumers while offering a unique mini-monopoly on their specific brand or style.