On the Upper West Side of Manhattan, there are hundreds of independent restaurants offering different specialties, services, and prices. The market for restaurants in this neighborhood is in a state of monopolistic competition.

Question

Quizplus · Accepted Answer

Monopolistic competition is a market structure where there are many firms offering differentiated products. In this case, there are many independent restaurants offering different specialties, which fits the definition of monopolistic competition.

On the Upper West Side of Manhattan, There Are Hundreds