Which type of competition involves suppliers promoting their products without competing strictly on price?

Monopolistic competition is characterized by a market structure where many suppliers offer products that are similar but not identical, allowing them to compete on factors other than price, such as quality, branding, features, and customer service. In this type of competition, businesses try to capture market share by differentiating their products, which can lead to some price-setting power. This differentiation fosters customer loyalty, as consumers may prefer one brand over another due to perceived value or unique characteristics.

In contrast, perfect competition typically involves many sellers offering identical products, making it difficult for any single supplier to influence market price. Oligopolistic competition features a few dominant suppliers who may engage in price wars or collusion, impacting price competition directly. Monopoly, on the other hand, involves a single supplier dominating the market, leaving little room for the kind of promotional activities among different brands that characterize monopolistic competition. Thus, the unique features of monopolistic competition explain why it is the correct answer to the question about suppliers promoting their products without strictly competing on price.