Firms such as Taco Bell and Chipotle operate hundreds of restaurants nationwide while firms such as El Pollo Loco operates only in five states.How would you characterize these stores?
A)Taco Bell and Chipotle are oligopolists while El Pollo Loco is a monopolistic competitor.
B)Taco Bell and Chipotle are duopolists while El Pollo Loco is a monopolistic competitor.
C)Taco Bell and Chipotle are duopolists while El Pollo Loco is an oligopolist.
D)They are all monopolistic competitors.

Question

Quizplus · Accepted Answer

All three firms operate in the fast food market, specifically in the Mexican food segment. However, the extent of their operations differs. Taco Bell and Chipotle have a national presence while El Pollo Loco is limited to five states. Despite the differences in size, each firm operates in a market with many close substitutes, making them all monopolistic competitors.

Firms Such as Taco Bell and Chipotle Operate Hundreds of Restaurants