Which of the following is the best example of a monopolistic competitive market?
A) diamonds
B) gas stations
C) restaurants
D) milk

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by a large number of firms selling differentiated products, meaning that each firm produces a slightly different product that is not perfect substitutes for other firms' products. Restaurants fit this description as there are many different types of restaurants offering different cuisines and atmospheres. While there may be some overlap in terms of menu offerings, each restaurant is able to differentiate itself and create a loyal customer base.

Which of the Following Is the Best Example of a Monopolistic