In the United States, the average person mostly patronizes firms that operate in
A)perfectly competitive markets.
B)monopolistically competitive markets.
C)oligopoly markets.
D)monopoly markets.

Question

Quizplus · Accepted Answer

The United States has a predominantly monopolistically competitive market structure, where there are many firms in the market offering similar, but not identical products. Consumers have the ability to choose from a range of options and firms have a certain degree of market power, but face competition from other firms. This is evidenced by the prevalence of brands and product differentiation in most industries, such as fast food restaurants, clothing retailers, and consumer electronics. While there are some industries that have monopolies or oligopolies, such as utilities and telecommunications, they are not as common as monopolistic competition. Additionally, perfectly competitive markets are rare in real-world scenarios.

In the United States, the Average Person Mostly Patronizes Firms