You and your friends want to go to dinner tonight.While texting back and forth you narrow down the choices to Chinese or Italian and then to Italian.Finally you choose Café Romana, because of its authentic dishes and excellent staff.Throughout your decision making process, you were analyzing competitors in a ___________.
A) Monopolistic competition
B) Pure competition
C) Monopoly
D) Oligopoly
E) Target market

Question

Quizplus · Accepted Answer

Monopolistic competition refers to a market structure in which firms compete based on differentiated products. In this scenario, the decision-making process involves comparing and contrasting the offerings of different restaurants to determine the best fit for their preferences. This signifies that they were considering differentiated products from various restaurants, which is characteristic of monopolistic competition.

You and Your Friends Want to Go to Dinner Tonight