Answer:
Hotels in New York City frequently experience an average vacancy rate of about 20 percent (i.e., on an average night, 80 percent of their rooms are full). This kind of excess capacity is indicative of A) Monopolistic Competitive market.
Explanation:
Monopolistic competition is a kind of market that is a combination of Monopolistic and Competitive markets. Here, there are numerous competitors in the market but every competitor is different from another and can offer services that are higher in price than its equal competition of the market.
In New York City, there are various hotels and each is an equivalent competition to the other, some of them might charge higher for specific services than the other competitors and some might not but, it will be considered as monopolistic competition.
