Correct Answer: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.

Solution : The correct answer is (a) Both the assertion and reason are true, and the reason is a correct explanation of the assertion.

The assertion is true. In an oligopoly, a small number of firms have significant market power and control a substantial portion of the market. These firms often compete with each other for market share.

The reason provided is also true. Oligopolistic firms often rely on strategies other than price to differentiate themselves and attract customers. This can include advertising campaigns, product innovation, branding, and other forms of non-price competition. These strategies allow firms to create a perceived difference in their products or services and compete based on factors other than price.

Therefore, both the assertion and reason are true, and the reason correctly explains why oligopolistic firms tend to engage in non-price competition.