Fill in the Blank QuestionFill in the blank question. competition is competition illustrated through product differentiation and advertising.

In the given statement, the blank can be filled with "monopolistic."

The complete sentence would read: "Monopolistic competition is competition illustrated through product differentiation and advertising."

Explanation

Monopolistic competition is a type of market structure where many firms sell products that are similar but not identical. In this scenario, companies strive to differentiate their products through various means, including unique branding, quality, features, and advertising. This differentiation allows each firm to have some degree of market power, enabling them to set prices above marginal cost. Advertising plays a crucial role in monopolistic competition as it helps firms to communicate their product's unique attributes to consumers, thereby influencing their purchasing decisions. This competition leads to innovation and variety in products, ultimately benefiting consumers.