Answer to Question #208838 in Microeconomics for Sinentlahla

Question

The market for fast food chicken restaurants, like KFC, chicken licken and nandos are said to be within the category of monopolistic competition. Examine this market for characteristics and behaviors that link them to this type of market structure (60)

Answer 1

Nandos, KFC and, Chicken Licken as well as other companies are known to be monopolistic competition in a point of view.

 industries under monopolistic competition have these features.

 a. There are several organizations.

 b. The entities usually avail differentiated product but similar alternatives

 c. Such markets need to be easy relatively, their prices need to be quite close.

 As this features relate to these organizations, the 

 market may be cartegorized as monopolistic competition. Other group of individuals can oppose claiming the industry as oligopoly considering the fact that Burger King and McDonald's tend to have market shares. This is however not much accurate since other collectives have large market share similarly.