Which of the following is the best example of a monopolistically competitive market?
A)The wheat market.
B)The electricity market.
C)The restaurant market.
D)The market for automobiles.

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by many firms producing differentiated products that are close substitutes for each other. Restaurants fit this description because they offer unique menu items and atmospheres, and compete with other restaurants in the same area. The wheat market is more likely to be perfectly competitive, while the electricity market can be oligopolistic or monopolistic depending on the market structure. The market for automobiles can be oligopolistic or monopolistic depending on the brand and model.

Which of the Following Is the Best Example of a Monopolistically