In most large cities there are a large number of bakeries.These bakeries produce similar,but not identical,products.Some bakeries claim to have the best cheesecakes in town,while others brag about their cookies or specialty breads.The bakery market in a large city is an example of:
A)a monopoly.
B)an oligopoly.
C)monopolistic competition.
D)perfect competition.

Question

Quizplus · Accepted Answer

This is an example of monopolistic competition, as there are many bakeries producing slightly differentiated products and there is some level of competition between them. This differs from perfect competition, where all products are identical, and from monopolies or oligopolies, where one or a few firms dominate the market.

In Most Large Cities There Are a Large Number of Bakeries.These