Question:-
“A car manufacturer may regard his business as highly competitive because he is keenly aware of his rivalry with the other car manufacturers in the market when making pricing and investment decisions. Each car manufacturer undertakes dynamic advertising campaigns seeking to persuade prospective buyers of the superior quality and better style of his cars and reacts very quickly to claims of superiority by his rivals.”
Which type of market structure is this? Just mention the name of that market structure.


Answer:-
The products are different as the competition between firms is based on standard
that is all the products are not same, they vary in their quality. Oligopolistic firms depends on the action, reaction of other firms in the industry as in the case of given example is also same. As the price is mentioned that the manufacturer of car in the given case is taking care of other firms meaning that price are not one that is not single balance. Which is also a supporting hint for oligopoly; it seems that there are no new entrants, so that’s why manufacturer just has to take care of other existing firms which also seem limited.