There are several hotels in a tourist community located in Wisconsin. Each hotel utilizes a slightly different marketing campaign, related to comfort, designed to highlight the reasons why this hotel is better than the others. For example, one of the hotels compares itself to the finest hotels in large cities; one has an outdoor, woodsy experience with glamping; another highlights quality accommodations at an affordable price, while another caters to families and their special needs. Which type of free market does this best represent?
A) monopolistic competition
B) perfect competition
C) oligopoly
D) monarchy
E) monopoly

Question

Quizplus · Accepted Answer

This scenario best represents monopolistic competition, where there are many sellers (hotels) in the market offering differentiated products or services (various marketing campaigns related to comfort) that are not perfect substitutes for one another. This market structure allows for competition based on factors other than just price, such as quality, brand, or unique selling propositions.

There Are Several Hotels in a Tourist Community Located in Wisconsin