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    Question

    Coupons and sales are frequently used marketing tactics in which form of competition?

    A pure competition Correct Answer Incorrect Answer
    B cross-market competition Correct Answer Incorrect Answer
    C oligopoly Correct Answer Incorrect Answer
    D monopolistic competition Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    In monopolistic competition, the many sellers compete with their products on a substitutable basis. For example, if the price of Post raisin bran rises too much, consumers may switch to Kellogg's raisin bran. Coupons and sales are frequently used to reduce customer switching.

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