[kirstiepaige31]

Two businesses that fall into this category. And why?

[Curlyben]

What do YOU think ?

[kirstiepaige31]

One example would be any type of clothing manufacturer that makes shirt, for say. There are several producers and countless consumers. They may be different in certain features, but they all serve the same purpose.

Second example could be any restaurant that serves burgers and fries. They are countless producers here, such as Mcdonalds, Burger King, Wendy's, Sonic, ETC. They all have differences but again it is the same purpose, tasty fast food on the go.

[ArcSine]

Kirstie, you're on the right track. But a question such as yours (especially the "why" part) wants you to support your choices by showing how the firms you've chosen satisfy the definition of monopolistic competition.

So start with the defining characteristics of a monopolistically competitive market. (At a minimum there are two criteria; your text might split one or both of those into two separate criteria, resulting in a three- or four-part definition of MC).

Then argue specifically how the businesses you've chosen satisfy the criteria. Your reasonings so far are getting warm, but they're focused only on one of the criteria.

[paraclete]

I'll answer your question in a historical context; a few years ago there were two airlines in the Australian domestic airline industry, Qantas and Ansett, they flew the same Capital city routes at the same time and their pricing was similar. The only thing that distinguished them was the terminal gate you boarded from. On some lesser routes they may have been the sole service provider