APEX ECON Only two large
corporations sell cars in a country. Though they sometimes
compete for customers, the corporations have agreed never to lower their
prices below a certain level. They also operate in different parts of the
country so that few consumers have a real choice between the companies.
As a result, the companies have little direct competition.
This situation bestillustrates which market condition?
A. Monopoly
B. Monopolistic competition
C. Pure competition
D. Oligopoly

B. Monopolistic competition

Explanation:

A monopolistic competition is a marketing term used to describe the competition that exist between two or more companies or producers where they sell similar products but with slight variations.

Each product sold by each competition is not a perfect substitute for the other.

The two firms can agree on a particular selling price based on the selling price of the other rival.

Therefore, from the aforementioned example, the type of marketing strategy is monopolistic competition.