Which of the following is MOST likely to be competing in monopolistic competition?
A) a soybean farmer
B) a steel producer
C) a restaurant
D) an oil producer
E) an electric utility company

Question

Quizplus · Accepted Answer

A restaurant is most likely to be competing in monopolistic competition as it offers differentiated products in a crowded market with a relatively low barrier to entry. The other options either produce homogeneous products (soybean and oil producers) or operate in markets with high barriers to entry (steel producers and electric utility companies).

Which of the Following Is MOST Likely to Be Competing