In a town in Southern Minnesota, there are three restaurants. The menus are very similar though one of the restaurants serves alcohol. The restaurants are about 20 minutes driving distance from each other.

A. Based on your study of the Product Markets, in which type of market are these three competitors operating? Explain.

B. One of the competitors is considering raising prices. If the price increase is implemented, will the competitors ignore the change or match it. Base your answer on the Product Market you identified in Question A? Explain.

C. One of the competitors has begun to offer a happy hour special with discounts on some menu items. Will the happy hour discounts be matched by the other competitors or will the competitors ignore the change. Base your answer on the Product Market you identified in Question A? Explain