Final answer:
a) Cost leadership, differentiation, focus
Firms adopt competitive strategies such as cost leadership, differentiation, and focus to compete in the market based on price, advertising, and product differences. In monopolistic competition, companies sell differentiated products, while oligopolies may involve strategic collaboration or competition among a few dominant firms.
Step-by-step explanation:
The generic types of competitive strategies that firms use to position themselves in the market are cost leadership, differentiation, and focus. To compete effectively, firms may choose to compete on the basis of price, using strategies like cost leadership to offer consumers lower prices than competitors.
Alternatively, firms may rely on differentiation, offering unique product features, advertising, or other product differences to distinguish their offerings from those of competitors. Additionally, some firms may adopt a focus strategy, honing in on a specific market niche or developing a core competency in one or a few products.
In the context of market structures such as monopolistic competition and oligopoly, firms have different strategic considerations. Monopolistic competition involves many firms selling differentiated products, where product differentiation and advertising play significant roles.
On the other hand, oligopolistic markets are dominated by a small number of firms that may engage in strategic decision-making regarding output and pricing, and may face the temptation to collaborate or compete.