Which of the following most closely approximates the conditions of monopolistic competition? a. The market for Grade A sorghum (milo), which is characterized by many firms producing a homogeneous product.
b. The market for jumbo aircraft, where one major domestic firm competes with one major foreign firm.
c. A cable television service. where a licensed supplier competes with firms offering satelite service.
d. The restaurant industry, which is characterized by many firms producing differentiated products in an industry with free cntry and exit.
e. The tobacco market which is characterized by a few firms producing a differentiated product with difficult entry.

d. The restaurant industry, which is characterized by many firms producing differentiated products in an industry with free entry and exit.

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services. there are little to no barriers to entry or exit of firms into the industry

examples of monopolistic competition are restaurants.  

a. The market for Grade A sorghum (milo), which is characterized by many firms producing a homogeneous product. this is an example of a pure competition

b. The market for jumbo aircraft, where one major domestic firm competes with one major foreign firm. This is an example of a duopoly

e. The tobacco market which is characterized by a few firms producing a differentiated product with difficult entry. this is an example of an oligopoly

answerproduct line length; product mix width;