Small pizza parlors exist in just about every town. Anyone can open a pizza parlor, and the pizzas from one parlor typically have different tastes and sizes than pizzas from another parlor. Thus, the pizza industry is an example of

Question

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The pizza industry is an example of monopolistic competition because there are many sellers, each offering a slightly different product (pizzas with different tastes and sizes), and there is free entry and exit in the market.

Small Pizza Parlors Exist in Just About Every Town