Freshness limited is a private company manufacturing Juices of flavours like mango, orange and litchi in Indian market. There are various other manufacturers available in the market who produce similar products. The formula of juice used by Freshness ltd. is also not very unique and can be easily copied. To keep up with the competitors, company's pricing policy is similar to its competitors and earns profit by not engaging in a price war. The company is involved in which kind of market structure?
Answer & explanation
Correct answer: option 4
Since the product is not differentiated, firm is price taker and do not possess any unique knowledge.