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Answer :
This is characteristic of Monopolistic Competition.
What is Monopolistic Competition?
- An industry with a lot of companies offering similar (but not identical) replacement goods or services is known as one with monopolistic competition.
- In a monopolistic competitive industry, there are few barriers to entry and exit, and no firm's decisions directly affect those of its rivals.
- Monopolistic competition and the branding business strategy are strongly intertwined. Between monopoly and perfect competition (a state that exists only in theory), monopolistic competition incorporates aspects of both.
- The economists Edward Chamberlain and Joan Robinson used the phrase in the 1930s to refer to the competition between businesses that offered products that were similar but not identical. In monopolistic competition, all firms have roughly equal levels of market power.
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