There's a large number of bakeries in the United States and each of these bakeries produces similar, but not identical, products. Some bakeries will claim to have the best cupcakes in town, while others will brag about other items like cookies or specialty breads. The bakery market is an example of
A) monopolistic competition.
B) perfect competition.
C) an oligopoly.
D) a monopoly.

Question

Quizplus · Accepted Answer

Monopolistic competition is a market structure that is characterized by a large number of firms selling products that are very similar but are perceived by buyers as different.

There's a Large Number of Bakeries in the United States