Question

There are many restaurants in a city, each one offering food and services that differ from those of its competitors. There is also free entry of sellers into the market, and each seller serves a very small fraction of the total number of meals served each day. The restaurant industry in Raleigh is best categorized as:

Answer 1

The restaurant industry in Raleigh with many unique offerings and free market entry is an example of monopolistic competition, where each restaurant has a mini-monopoly on its particular style or type of food.

Step-by-step explanation:

The restaurant industry in Raleigh, given the presence of many restaurants each offering unique food and services along with free entry into the market and a fractional share of the market held by each seller, is best categorized as monopolistic competition. This is because monopolistic competition is characterized by many firms competing against one another while selling products that are differentiated, such as by style, type, or brand, leading to each firm having a mini-monopoly on its particular version of the product. The food industry as a whole is a vast landscape, representing a $300 billion industry that employs hundreds of thousands and feeds millions, with restaurants playing a crucial role.

Answer 2

Answer: monopolistically competitve

Step-by-step explanation:

Yes they are competitive, but taking into cognisance that they offer differing services and there is a level of uniqueness with each restaurant , so there is a monopolistic competition between them.