In a monopolistically competitive market, the consumer receives the benefit of

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In a monopolistically competitive market, firms engage in product differentiation, which means they offer the consumer a variety of differentiated products. This benefits the consumer by allowing them to choose the product that best suits their preferences and needs. Additionally, firms may be forced to lower their prices due to competition from other firms offering similar products, further benefiting the consumer. However, monopolistically competitive markets are not allocatively efficient because firms do not produce at minimum average cost and prices are not equal to marginal cost.

In a Monopolistically Competitive Market, the Consumer Receives the Benefit