An example of a firm in monopolistic competition is
A) your local water company.
B) the sole cable television company.
C) the many Chinese restaurants in San Francisco .
D) Kansas Power and Light, the sole provider of electricity in Kansas City.
E) Shaniq, a wheat farmer.

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by many firms that produce differentiated products, such as the many Chinese restaurants in San Francisco. A local water company (A) and Kansas Power and Light (D) are examples of natural monopolies, while the sole cable television company (B) is an example of a pure monopoly. Shaniq, a wheat farmer (E), is an example of perfect competition as there are many wheat farmers producing identical products.

An Example of a Firm in Monopolistic Competition Is