A significant benefit of monopolistic competition compared with pure competition is

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Monopolistic competition allows for greater product variety as firms differentiate their products through branding or unique features, giving consumers more choices. This is not typically seen in pure competition where all firms sell identical products. While there may be less likelihood of X-inefficiency in monopolistic competition, it is not a significant benefit compared to the variety of product offerings. Improved resource allocation and incentives to achieve economies of scale are not typically associated with monopolistic competition.

A Significant Benefit of Monopolistic Competition Compared with Pure Competition