Which of the following is the best example of a firm that competes in a monopolistically competitive market?
A)the U.S. Postal Service
B)Microsoft
C)a movie theater
D)an automobile manufacturer

Question

Quizplus · Accepted Answer

A movie theater is the best example of a firm that competes in a monopolistically competitive market. In this market structure, there are many firms that offer differentiated products, such as different movie selections and amenities like luxury seating or IMAX screens. Each firm has some control over the price of their products, but they also face competition from other movie theaters. The U.S. Postal Service operates in a government-regulated monopoly, Microsoft operates in an oligopoly, and automobile manufacturers may operate in monopolies or oligopolies depending on the specific brand and market.

Which of the Following Is the Best Example of a Firm