Fraggini's Pizza operates in a town with 50 other restaurants that sell pizzza. Fraggini's differentiates its pizza by using a secret family recipe for its sauce, and by staying open until 4:00 in the morning. In which type of market structure does Fraggini's operate?

Question

Quizplus · Accepted Answer

Fraggini's operates in a monopolistic competition market structure because it competes with many other restaurants (indicating a competitive market) but differentiates its product through a unique sauce recipe and longer hours, which are characteristics of monopolistic competition.

Fraggini's Pizza Operates in a Town with 50 Other Restaurants