Which of the following is an example of monopolistic competition in the USA?

Monopolistic competition is characterized by a market structure where many firms offer products or services that are similar but not identical, allowing for some degree of market power over pricing.

In the context of this question, electric service providers in the USA tend to operate under a different market structure. Many areas have only one electric provider, leading to a monopoly in that specific geographic location. This situation can vary based on state regulations, but typically, electric utilities are heavily regulated and do not demonstrate the traits of monopolistic competition, such as the presence of many competitors providing differentiated products.

Fast food is a better example of monopolistic competition. Numerous chains serve similar yet distinct food items, appealing to different consumer preferences. Each fast food company differentiates itself through its specific menu, branding, and service style, allowing them to maintain their individual market presence—key characteristics of monopolistic competition.

In the case of cosmetics, several brands offer a wide range of products that may vary in formulation, branding, and marketing, significantly demonstrating monopolistic competition. Likewise, athletic shoe manufacturers create diverse product lines and branding strategies that contribute to the competitive differentiation necessary for this market structure.

Therefore, among the provided choices, fast food, cosmetics, and athletic shoe manufacturers each exemplify aspects of