Answer:
C. monopolistically competitive market.
Explanation:
As we know that the Monopolistic competition is a market structure which refers to the market in which the various firms are related to each other in a closest manner also they sell differentiated products.
In this market, there is a freedom of free entry and exit.
So in the given scenario, since various italian restaurants offered different items so this represents that they operates in  monopolistically competitive market
Hence, the correct option is c.
