What is a short 100 word response back to my classmates post: a.) Restaurants fall under Monopolistic competition. This being because there are many different restaurants competing and every one of them have slightly different products then the others. They are all also located in different aeras. If every restaurant sold identical products the production costs would be above what could have been achieved, but this does benefit the consumers as they have a variety to choose from. Restaurants are price makers, they control their prices, however under this situation they price elasticity of demand would be higher under a situation of monopoly. b.) I have chosen to go off of an electric company. They are a firm that also operates in a monopoly. Electricity is a grand exclusive to service multiple municipalities through the local government. The effect that this has on the market is that when one competitor has been eliminated, the monopoly firm is able to raise the prices of electricity, this then will affect consumers because their prices or electricity will rise. Monopoly is a seller of a good or service which really does not allow for any substitutions. When there are no competing firms for