Family Needs Inc.is a supermarket chain.Due to strong competition from other stores in the industry, Family Needs has aggressively used branding, pricing, and superior customer service to uniquely position itself in the market.As a result, the supermarket chain has been able to differentiate itself from its competitors and sell its products at higher prices.Which of the following industry competitive structures does this scenario best illustrate?

Question

Quizplus · Accepted Answer

This scenario best illustrates a monopolistically competitive structure. A monopolistically competitive industry is characterized by many firms, a differentiated product, some obstacles to entry, and the ability to raise prices for a relatively unique product while retaining customers.