If competitive market circumstances are such that there are few sellers who are sensitive to each other's prices, and the purpose of advertising is to inform but avoid price competition, then __________ must exist in the industry.
Based on the scenario being described within the question it can be said that there must exist an oligopoly in this industry. This term refers to a market structure where a few firms dominate the entire market. Which would lead to steady prices since these companies stand to lose a lot by going into competition with each other. Therefore the advertising purposes are mainly to inform and not enter into price competition.
