Which of the following is a real-world example of a monopolistically competitive industry?
A)The soft-drink industry
B)The breakfast cereal industry
C)The semiconductor industry
D)The Chicago restaurant industry

Question

Quizplus · Accepted Answer

The Chicago restaurant industry is a real-world example of a monopolistically competitive industry because it consists of many small independent restaurants that offer similar but slightly differentiated services to customers. These restaurants compete on the basis of product differentiation, pricing, and marketing efforts, but they do not have significant market power or control over the market price.

Which of the Following Is a Real-World Example of a Monopolistically