Which of the following most closely approximates the conditions of a monopolistically competitive market?
A. The market for Grade A eggs, which is characterized by a large number of firms producing a homogeneous product.
B. The restaurant industry, which is characterized by firms producing a differentiated product in a market with low entry barriers.
C. Local cable television service, where a licensed supplier competes with firms offering satellite service.
D. The market for jumbo aircraft, where one major domestic firm competes with one major foreign firm.
Answer: B
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