Question

Twelve years after Starfire's appearance, a similar coffee-shop chain, Reindeer Brews, entered the marketplace. Reindeer charges $3 for a mug of hot cocoa and a similar community experience. How would you characterize this scenario

Answer 1

Answer:

Price competition in a monopolistically competitive market

Explanation:

The Monopolistic rivalry is an industry state with several firms that are closely linked to each other but offer distinct goods. Therefore, this sector has unlimited entry and exit

Here the company offers the same service but there are totally different in terms of design, service, quality, etc

Hence, the correct option is c