An example of monopolistic competition is the _____ industry.
A)restaurant
B)soft-drink
C)automobile
D)airline

Question

Quizplus · Accepted Answer

Restaurants typically offer a unique dining experience or cuisine, which differentiates them from other restaurants. They also have some control over the price they charge, although there is still competition from other restaurants in the same area. Therefore, restaurants fall under the category of monopolistic competition.

B) Soft-drink industry may be an oligopoly which has a few large firms dominating the market.

C) Automobile industry is an oligopoly too as a few large companies dominate the market.

D) Airline industry could be considered as either oligopoly or monopolistic competition as a few large companies dominate the market, but also offer slightly different products and services.

An Example of Monopolistic Competition Is the _____ Industry