Final answer:
The competition between similar retailers like CVS and Walgreens is termed monopolistic competition, where many firms sell distinctive yet related products, leading to both a mini-monopoly and intense competition.
Step-by-step explanation:
The competition between the same types of retailers, such as the case with CVS and Walgreens, is known as monopolistic competition. This form of market situation is characterized by a myriad of firms that vie for customers' attention and dollars, though they offer products that are distinct but serve a similar purpose or category. An epitome of this can be observed at the Mall of America where a multitude of retail stores offers a variety of clothing but each has its unique styles and brands, catering to different customer preferences and creating niche markets within the retail space.
Product differentiation is the key aspect of monopolistic competition, enabling firms to maintain a mini-monopoly over their specific style, flavor, or brand name. However, despite their unique offerings, these firms remain in rigorous competition with each other for market share. The retail landscape, with over 600,000 restaurants in the United States alone, is a testament to the prevalence of this market structure, where each establishment brings its own spin to a common product.