Think about all the restaurants that are located near your campus. You have probably noted some new ones appearing, and others closing because of lack of business. What type of competition exists in the restaurant business?
A) monopolistic competition
B) oligopolistic competition
C) an oligopoly
D) perfect competition

Question

Quizplus · Accepted Answer

In the restaurant business, there are typically a large number of competitors, but they offer slightly different products or services. This creates monopolistic competition, where businesses are competing for customers based on product differentiation and branding rather than pricing. This is evident on most college campuses, where there are many restaurants offering varying types of food and dining experiences, but they are not necessarily competing solely on price.

Think About All the Restaurants That Are Located near Your