How are Chipotle and McDonalds both like perfect competition? How are they both

Question

How are Chipotle and McDonalds both like perfect competition? How are they both like monopolistic competition? Are they MORE like one than the other, and WHY? Then, after you have answered those questions, re-read the section "Making the Connection" about cupcakes ("Are All Cupcakes The Same?") What are the similarities between the market described in the "cupcake" section and the markets in which Chipotle and McDonalds operate? What are the differences? And what exactly do these similarities or differences mean cupcake profits in the long-run?

Explanation / Answer

They both are huge corporations with large number of outlets, They certainly are very few companies the size of these two companies so they are in monopolistic competition

Both these companies do make cup-cakes and both compete with each other. The market for cup cakes depends on individual tastes of the customer about flavor and material that is used,

Both companies compete for market share of cup cakes and as these two companies are in monopolistic competition they engage in price reduction and both companies profits from cup cakes in long run will decrease.

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