Which of the following is most likely to be a monopolistically competitive firm?

Question

Quizplus · Accepted Answer

A fast food restaurant is most likely to be a monopolistically competitive firm because there are many competitors in the fast food industry, but each firm offers slightly differentiated products or services, such as different menu items, prices, or atmosphere. This allows each firm to have some control over their prices and attract a loyal customer base based on their unique offerings.

A soybean farmer (A) and lettuce farmer (B) are both examples of perfectly competitive firms because the products they produce are standardized and there are many farmers producing the same crops. A municipal water district (C) is a natural monopoly because it is the sole provider of water services for its geographic area.

Which of the Following Is Most Likely to Be a Monopolistically