1. **Stating the problem:** We are asked to identify the type of market structure for the gourmet soda beverage industry in Rexburg, ID, and explain the reasoning behind this choice. 2. **Understanding market structures:** Common market structures include: - **Perfect competition:** Many sellers, identical products, easy entry and exit. - **Monopolistic competition:** Many sellers, differentiated products, relatively easy entry and exit. - **Oligopoly:** Few sellers, products may be similar or differentiated, significant barriers to entry. - **Monopoly:** One seller, unique product, high barriers to entry. 3. **Analyzing the given information:** - The first gourmet soda store opened in 2015. - Since then, 22 more stores have opened around the campus. - Opening a store requires a business license and a food handlers permit, which can be obtained in about a week. 4. **Applying the criteria:** - There are many sellers (23 stores total), indicating multiple competitors. - The products are likely differentiated by flavors and cream additions. - Entry barriers are low since permits can be obtained quickly. 5. **Conclusion:** Based on the number of sellers, product differentiation, and low entry barriers, the market structure is best described as **monopolistic competition**. 6. **Explanation:** Monopolistic competition fits because many sellers offer similar but not identical products, and new competitors can enter the market relatively easily. **Final answers:** A. The market structure is **monopolistic competition**. B. This is because there are many sellers offering differentiated products with low barriers to entry.