In the metropolitan Detroit area, there are large numbers of Chinese restaurants offering somewhat different tasting foods and portion sizes. This market is:
A) purely competitive.
B) monopolistically competitive.
C) an example of oligopoly.
D) price-taker market.

Question

Quizplus · Accepted Answer

The market is monopolistically competitive because it features many sellers (Chinese restaurants) offering differentiated products in terms of taste and portion sizes, which is characteristic of monopolistic competition.

In the Metropolitan Detroit Area, There Are Large Numbers of Chinese