Which of the following is an example of a monopolistically competitive industry?
A) breakfast cereals
B) cigarettes
C) restaurants in New York City
D) milk

Question

Quizplus · Accepted Answer

Restaurants in New York City is an example of a monopolistically competitive industry as there are a large number of restaurants offering differentiated products and services, but they also face some degree of competition from each other. Breakfast cereals and milk are closer to being sold in a perfectly competitive market, while cigarettes are often a part of an oligopolistic industry.

Which of the Following Is an Example of a Monopolistically