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Which firm produces in an industry with the characteristics of monopolistic competition? Pepsi Chevrolet GM Burger...

Which firm produces in an industry with the characteristics of monopolistic competition?

Pepsi

Chevrolet

GM

Burger King

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Answer #1

From the given options

  • Burger King produces in an industry ( fast food industry ) with the characteristics of monopolistic competition ( 4th Option )

The reason why Burger King can be regarded as a firm that operates in a monopolistically competitive firm is:

  • There are many firms producing fast-foods in the market but not as many as the perfectly competitive market
  • Though the fast-foods produced by Burger King are not completely heterogeneous. They are nearly identical to other firms ( like McDonald's ), but still not homogeneous as the perfectly competitive ones

That's why Burger King from the given options, perfectly matches the characteristics of a firm that belongs to a monopolistically competitive one ( 4th Option )

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