In 2005, General Motors introduced a blockbuster promotion by offering customers the employee discount prices for any vehicle. Chrysler and Ford followed the trend and offered the same program. This ...
... intense price competition among three major automobile producers resulted in lower profits for all three companies. This outcome illustrates a problem for firms in:
a) pure competition.
b) pure monopoly.
c) monopolistic competition.
d) oligopolistic markets.
The answer is c) monopolistic competition.
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