Grocery stores in a large city provide an example of

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Grocery stores in a large city typically operate in a market structure known as monopolistic competition. This is because there are many sellers (grocery stores), each offering slightly differentiated products (e.g., different brands, organic options, in-store services) in an attempt to capture more market share. Unlike in a pure monopoly or an oligopoly, entry into and exit from the market is relatively easy, and while there are many competitors, each has some degree of market power due to product differentiation.

Grocery Stores in a Large City Provide an Example of