Question

question 8 of 8
cameron has worked in an orchard that her family owns for the past 5 years. now, she wants to start her own business by opening a restaurant. while preparing for it, she realizes the market structure of a restaurant industry (monopolistic competition) is different from that of an orchard industry (perfect competition). the main difference between the two is

the restaurant industry is easy to enter, while the orchard industry is very difficult to enter

the restaurant industry has many competitors, while the orchard industry has no competitors

the restaurant industry has no control over price, while the orchard industry has some control over price

the restaurant industry has some differentiation in the products, while the orchard industrys products are identical

Explanation:

In perfect competition (orchard industry), products are homogeneous. In monopolistic competition (restaurant industry), products are differentiated. Entry - ease is not the main difference. Both have many competitors. Firms in perfect competition have no price - control and those in monopolistic competition have some limited price - control due to product differentiation.

Answer:

D. the restaurant industry has some differentiation in the products, while the orchard industry's products are identical