In the restaurant industry, a large number of restaurants cater to similar customer needs. However, each restaurant makes its pr

Question

4 years ago

5

In the restaurant industry, a large number of restaurants cater to similar customer needs. However, each restaurant makes its pr

oduct unique by offering a different cuisine, a different ambience, organic ingredients, or different services like home delivery. This differentiation allows each restaurant to set its own prices. Thus, the restaurant industry best illustrates a(n) _________

Business

1 answer:

netineya [11] · Answer 1 · 2021-12-03T22:41:45+03:00

Answer: Monopolistically competitive structure.

Explanation:

The restaurant industry as described in the question is a Monopolistically competitive structure. In the Monopolistically competitive structure different businesses offer a similar product for sale and they try to make their products unique and can set their prices without considering the price set by their competitors. The Monopolistically competitive structure is difficult market for new businesses to break into.