Question

Keith works in the marketing department of an airline service company. He was asked to identify any current or future changes in market conditions. He found that one of

the three main competitors for his company had launched a package deal campaign where customers could get a discount if they booked a bunch of tickets together. Keith

knew that this would alter the market dynamics. What kind of market structure does Keith's company use?

Keith's company uses a/an

market structure

Answer 1

Its oligopoly

Step-by-step explanation:

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Answer 2

The market structure that Keith's company uses is monopolistic competition.

Step-by-step explanation:

In monopolistic competition, there are many firms in the market, the price is mostly determined by market forces, and as a result, the companies try to sell products that are different in some way.

In this case, Keith's company competitors are trying to use a pricing strategy to increase their market share. They are trying to compensate loss of revenue from the lower prices, with a higher sales volume.