A good example of a monopolistically competitive firm is
1)The Gap clothing store.
2)a neighbourhood drycleaner.
3)a Prince Edward Island potato farmer.

Question

Quizplus · Accepted Answer

A monopolistically competitive firm is one that operates in an industry with a large number of firms, each selling differentiated products. The Gap clothing store and a neighborhood dry cleaner both sell products that are slightly differentiated from their competitors, making them good examples of monopolistically competitive firms. The Prince Edward Island potato farmer, however, is likely operating in a perfectly competitive market, where all firms sell identical products.

A Good Example of a Monopolistically Competitive Firm Is