The correct answer is c) oligopoly.
The soft drink industry, which includes major players like Coca-Cola, PepsiCo, and the Schweppes Group, operates in an oligopolistic market. In an oligopoly, a few firms dominate the market, and each firm has significant market power to influence prices and supply. These companies often compete on non-price factors such as branding, advertising, and product differentiation.
Unlike a monopoly, where a single firm controls the entire market, or perfect competition, where many firms offer identical products, the soft drink industry has a small number of dominant firms that create barriers to entry for new competitors. This allows them to collaborate subtly, setting prices and marketing their products in a way that maximizes their profits.
Therefore, when considering the dynamics of the soft drink industry, it is clear that it aligns most closely with the characteristics of an oligopoly.