Question

Glamour Gal, a popular women's cosmetics company is gaining popularity among younger women. Differentiating itself from the sea of companies that compete for the same business, it focuses on products for sensitive, youthful skin. Glamour Gal clearly operates in an oligopolistic environment.

a. True
b. False

Answer 1

Answer:

The correct answer is letter "B": False.

Explanation:

An oligopoly is a market where a few companies collide to take control of the price and supply of the goods or services provided. On the other hand, a monopolistic competitive market is characterized by having many companies competing against each other. The competitive advantage of firms will determine if consumers choose to buy the products of one company or the other.

Thus, Glamour Gal is a monopolistic competitive market.