When Toyota Experienced Declining Sales, It Began Offering Price Incentives

Multiple Choice

When Toyota experienced declining sales, it began offering price incentives to new car buyers. Nearly immediately, Ford and General Motors began similar promotions. Which of the following describes these businesses in this scenario?

A) They represent an oligopoly in which there are few sellers, and sellers often match the prices of competitors.
B) They are engaging in monopolistic competition in which there are many buyers as well as a relatively large number of sellers that differentiate their products from those of competitors.
C) They are engaging in pure competition, in which no single seller is powerful enough to affect prices.
D) They are engaging in monopolistic competition, in which the products are very similar.