There are many restaurants in the city of raleigh, 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: a. an oligopoly. b. monopolistically competitive. c. a pure monopoly. d. perfectly competitive.

b. monopolistically competitive

Explanation:

The characteristics of a monopolistically competitive industry includes:

1. Many Buyers and Sellers

2. No barriers to entry or exit

3. Non homogenous products

4. Firms are price makers

Therefore, the resturant is a monpolistically competitive industry.

The characteristics of an oligopoly includes:

1. Interdependence in decision making

2. There are few firms in the industry.

The characteristics of a monopoly includes:

1. There is only one firm in the industry

2. There are no subsistuites for the products.

3. High barriers to entry and exist.

The characteristics of a perfectly competitive industry includes:

1. Many buyers and sellers

2. No barriers to entry or exist.

3. No product differentiation.

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