Paul Avery is a salesperson at the only Ford automobile dealership in Winnipeg,Manitoba.However,there are several other auto dealerships in town,offering both domestic and foreign cars and trucks.Paul works hard to keep his customers satisfied because he knows that if his customers are unhappy,they can simply buy a car from one of the many other comparable dealers in Winnipeg.This is an example of:

Question

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The situation described in the scenario is an example of monopolistic competition. This is because there are many competitors offering comparable products (cars and trucks), but each dealership has some degree of control over its pricing and marketing strategies in order to differentiate itself and attract customers. This means that Paul's dealership cannot set prices too high or provide poor customer service, or else customers will simply go to one of the other dealerships in town.

Paul Avery Is a Salesperson at the Only Ford Automobile