Final answer:
Aurora operates her shop in a monopolistic competition market, where many firms offer differentiated products and compete on various aspects such as price and quality, similar to the retail environment at the Mall of America.
Step-by-step explanation:
In determining the type of market structure in which Aurora operates her shop, we need to consider the characteristics of different market types. Given a retail environment with a large number of competing stores that sell differentiated but similar products, it's likely that Aurora's shop is part of a monopolistic competition market. Monopolistic competition is observed where many firms are competing, but each offers a slightly different product, and they compete on factors such as price, quality, and branding.
Examples of monopolistic competition can be seen in large shopping areas like the Mall of America where stores such as Ann Taylor, Urban Outfitters, Banana Republic, J. Crew, Nordstrom's, Motherhood Maternity, and Victoria's Secret all offer unique shopping experiences and products, though they are all essentially apparel retailers. This differentiates monopolistic competition from perfect competition, where products are identical, or oligopoly and monopoly, where there are fewer firms, with oligopolies often acting interdependently and monopolies having no competition at all.