There are dozens of sit-down restaurants in a large city in dozens of locations. The best model to analyze this market is

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Monopolistic competition is the best model to analyze the sit-down restaurant market in a large city because there are many firms (dozens of restaurants in dozens of locations) selling differentiated products (unique recipes and menu items), which means each firm has some market power but faces competition from other restaurants. This leads to a relatively high degree of price flexibility, advertising, and quality differentiation. In contrast, perfect competition assumes that all firms sell identical products, oligopoly assumes that a small number of firms dominate the market and have significant market power, and monopoly assumes that there is only one firm controlling the market with no close substitutes.

There Are Dozens of Sit-Down Restaurants in a Large City