Answer:
Yes, consumers benefit from monopolistic competition relative to perfect competition in that, there is variety and more differentiated options to choose from in Monopolistic competition as compared to perfect competition where prices are not determined by the seller.
Explanation:
Monopolistic competitive markets have firms competing with one another for the same group of customers to some degree, each firm's product is a little bit different from that of all the other firms, and therefore each firm gives addition value to attract more clients.
In the case of perfect competition where prices are already fixed and the aim is to maximize profit. There might be no emphasis on quality and uniqueness.
The consumer benefits more and achieves more satisfaction due to variety of options and pricing from monopolistic competition.
Answer:
Yes.
Consumers benefit in some ways from monopolistic competition relative to perfect competition.
Explanation:
One of the major ways a customer can benefit from a monopolistic competitive market is through product differentiation, diversity choice and utility.
It is important to understand what the two market structures are:
The model of monopolistic competition describes a common market structure in which firms have many competitors, but each one sells a slightly different product. A good example is the smartphone industry. Customers can choose which brand of smartphones they want to buy depending on the various manufacturers .
In a perfect competition prices are dictated by supply and demand. Firms in a perfectly competitive market are all price takers because no one firm has enough market control.In this market type, all the sellers sell exactly the same commodity. An example is the fruit market. The fruits are the same regardless of the seller.
Differentiation creates diversity, choice and utility. In a monopolistic competitive market, consumers are treated with different versions of each product depending on the businesses brand, and they can make their choices according to their taste. This gives consumers a better experience than a perfect market, where the goods sold are exactly the same and there is no diversity.
