Which type of competitor involves firms that compete in the same product class but with different features, benefits, and prices?

The type of competitor described in the question refers specifically to firms that operate within the same product category while offering distinct features, benefits, and pricing structures. This definition aligns with the concept of product competitors. These competitors address the same customer needs or desires but differentiate themselves through variety in their offerings—such as varying quality, performance, and pricing.

In contrast to brand competitors, who offer similar products under different brand names, product competitors focus on the overall category, and the differences in their products are actually essential to meeting diverse consumer preferences. Monopolistic competitors refer to firms that have some degree of market power due to product differentiation but are in a market with many sellers. Generic competitors typically offer no-frills products that meet basic needs, while product competitors provide a broader range of options for consumers. Thus, when looking at firms that compete in the same product category but with differentiation, product competitors are the most accurate classification.