One of the major benefits to society of monopolistic competition is

Question

Quizplus · Accepted Answer

The major benefit to society of monopolistic competition is product differentiation. This means that firms try to differentiate their products from those of their competitors in order to attract customers, which leads to innovation and variety of products being available in the market. This benefits consumers as they have more options to choose from and can select products that suit their specific needs and preferences. Additionally, product differentiation can act as a restraint on prices, as firms may not be able to charge excessively high prices without losing customers to their competitors who offer similar products at lower prices.

One of the Major Benefits to Society of Monopolistic Competition