Firms that are classified as operating in an oligopoly tend to have some pricing power if they are able to differentiate their product or service offerings from those of their competitors, so the recommended mode of competition is

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BlackTom AI · Accepted Answer

When oligopolies differentiate offerings, they can gain pricing power while competing on factors other than price. 
Option 1: 'service-based competition.' This emphasizes service, which is a component of non-price competition but is not the full scope of strategies that leverage differentiation to gain pricing power. 
Option 2: 'non-price-based competition.' This captures the broader idea that firms in an oligopoly often compete through features like product differentiation, branding, quality, customer service, and innovation rather than simply lowering prices. These non-price levers help sustain pricing power. 
Option 3: 'price-based competition.' If firms rely primarily on price, differentiation loses its impact and pricing power erodes, which undermines the goal described. The recommended mode moves away from pure price wars toward differentiation-led competition. 
Option 4: 'hypercompetition.' This term describes intense and dynamic competition with rapid moves and counter-moves, often including price cutting; it does not align with the notion of preserving pricing power through differentiation in oligopolies. 
In summary, the reasoning supports focusing on strategies that differentiate offerings and compete on attributes other than price, such as quality, features, and service, rather than engaging in price competition or assuming perpetual hypercompetitive dynamics.

Firms that are classified as operating in an oligopoly tend to have some pricing power if they are able to differentiate their product or service offerings from those of their competitors, so the recommended mode of competition is

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