Which of the following industries is most likely to represent the monopolistic competition market structure?
A)automobiles
B)tobacco products
C)restaurants
D)farm equipment

Question

Quizplus · Accepted Answer

The restaurant industry is most likely to represent the monopolistic competition market structure. This market structure is characterized by a large number of firms selling differentiated products in a market with low barriers to entry. In the restaurant industry, there are many different types of cuisine and dining experiences, and new restaurants can enter the market relatively easily. However, each restaurant has its own unique menu and atmosphere, which differentiates it from its competitors. This type of market structure is different from perfect competition, where all firms sell identical products, and monopoly, where there is only one seller in the market. The other industries listed (automobiles, tobacco products, and farm equipment) are either oligopolies or monopolies.

Which of the Following Industries Is Most Likely to Represent