On an average night,80 percent of hotel rooms are occupied in large Canadian cities.What type of market is this kind of excess capacity indicative

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The excess capacity of hotel rooms in large Canadian cities where 80% of the rooms are occupied on an average night is indicative of monopolistic competition, where several firms compete by offering slightly differentiated products (i.e., different locations, amenities, prices, etc.) in the same market. The high occupancy rate suggests that demand is relatively high but customers may have a range of choices based on the differentiation. A monopoly would have no competitors, perfect competition would have no excess capacity, and an oligopoly would have a small number of dominant firms that could collude and limit competition.

On an Average Night,80 Percent of Hotel Rooms Are Occupied