Final answer:
Multipoint competition refers to a scenario where c. diversified firms engage in competition across multiple markets, in contrast to monopolistic competition where many firms compete with differentiated products in a particular market.
Step-by-step explanation:
c. Multipoint competition occurs when diversified firms compete against each other in several markets. This situation arises in contrasts with a market structure known as monopolistic competition, where many firms sell differentiated products that are not identical but have variations such as different styles, flavors, or brand names that set them apart. In a scenario of multipoint competition, the same set of competitors face off in different market arenas, challenging each other across various product lines or geographical territories.
Monopolistic competition features a large number of firms that each have a mini-monopoly on their own distinctive version of a product, yet they still compete with each other. As an example, there are over 600,000 restaurants in the United States, each offering its own unique cuisine or dining experience, but all participating in the broader competition for customers.
Here, firms must be both innovative in differentiating their offerings and aggressive in their marketing strategies to stand out in a sea of alternatives.