Question

(a) What are the advantages of a monopolistically competitive market for consumers? (b) What are some of the disadvantages?

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The advantages of a monopolistically competitive market for consumers:

  1. In a monopolistically competitive (MC) market, consumers profit from trade because they may consume a larger variety of goods at a cheaper price.

  2. Consumers are informed about various goods and services on the market.

  3. higher quality of goods.

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