Question

What's going on here? As soon as Dewey Cheatum and Howe Motors increase the prices on their SUVs, then so does their only competitor, You Betcha Motors! Their prices are basically the same for similar vehicles, although their advertising says their products are really very different. What kind of competition exists here?

Answer 1

Answer: Oligopolistic Competition

Explanation:

Here, in this particular case we can state that the competition that persists in this scenario is Oligopolistic Competition. It is referred to as the situation in a market under which there tend to be only few sellers that further sell a differentiated product, here the seller tends to have higher percentage of  market control and thus they further cannot allow themselves to disregard the  conduct of other sellers.