Based on the information below, Company Z is most likely engaging in

Question

Company Z attempts to attract new customers by:

Offering a variety of choices at local stores
Offering unique customer services
Offering better warranties and rebates



Group of answer choices

collusion (getting with another business to set production and price)

pure price competition

monopolistic competition

price taking

Answer 1

Based on the information provided, Company Z is most likely engaging in monopolistic competition.

Monopolistic competition is characterized by many firms competing in a market where products are differentiated. In this scenario, Company Z is attempting to attract new customers through various strategies such as offering a variety of choices, unique customer services, and better warranties and rebates. These tactics indicate that the company is trying to differentiate itself from competitors rather than solely competing on price, which aligns with the principles of monopolistic competition.