Dominique's International Grocery Store: A Unique Example of Monopolistic Competition

What type of competition does Dominique's international grocery store fall under?

a) Perfect competition

b) Monopolistic competition

c) Oligopoly

d) Monopoly

Answer: b) Monopolistic competition

Dominique's international grocery store falls under monopolistic competition, where it operates in a marketplace with many firms but offers distinctive international products setting it apart from other stores.

Monopolistic competition is characterized by firms competing against each other while selling unique products that differentiate them from competitors. In Dominique's case, each international product sold in the store creates a mini-monopoly due to its distinctive qualities.

Despite facing competition from other stores, Dominique's international grocery store maintains a competitive edge by offering a variety of unique products from different countries, attracting customers seeking international flavors and brands.