Because of the existence of a large number of similar but not identical substitutes in most communities, the market for chiropractors is best considered to be:
A)an oligopoly.
B)a perfect competition.
C)monopolistically competitive.
D)a monopoly.

Question

Quizplus · Accepted Answer

The market for chiropractors is best considered to be monopolistically competitive. This is because there are a large number of similar but not identical substitutes available in most communities, such as massage therapy, physical therapy, and acupuncture. This creates competition among chiropractors to differentiate themselves through advertising, price, and quality of service. However, chiropractors are not in a perfect competition as there are some barriers to entry, such as the cost of education and licensing requirements. It is also not an oligopoly or monopoly as there are multiple firms competing in the market.

Because of the Existence of a Large Number of Similar